[m.youssif]

EUR/JPY drops sharply to as low as 116.46 but is still holding above 115.96 resistance turned support. Outlook remains unchanged. Rebound from 106.57 is still expected to resume sooner or later. Above 119.25 minor resistance will flip bias back to the upside for 123.31 first and break will target 61.8% retracement of 139.21 to 105.42 at 126.30 next. However, note that sustained trading below 115.53 will dampen this bullish view and turn focus back to 113.54 support instead.

In the bigger picture, sustained trading above 55 weeks EMA continues to affirm the case of medium term reversal. That is, whole decline from 2008 high of 169.96 has completed with three waves down to 105.42 already. Current rise from 105.42 should extends towards 139.21 resistance (which is close to 50% retracement of 169.96 to 105.42 at 137.69) for confirmation. On the downside, break of 113.54 support is needed to invalidate this view. Otherwise, outlook will remain bullish.

[m.youssif]

EUR/JPY drops sharply to as low as 116.46 but is still holding above 115.96 resistance turned support. Outlook remains unchanged. Rebound from 106.57 is still expected to resume sooner or later. Above 119.25 minor resistance will flip bias back to the upside for 123.31 first and break will target 61.8% retracement of 139.21 to 105.42 at 126.30 next. However, note that sustained trading below 115.53 will dampen this bullish view and turn focus back to 113.54 support instead.

In the bigger picture, sustained trading above 55 weeks EMA continues to affirm the case of medium term reversal. That is, whole decline from 2008 high of 169.96 has completed with three waves down to 105.42 already. Current rise from 105.42 should extends towards 139.21 resistance (which is close to 50% retracement of 169.96 to 105.42 at 137.69) for confirmation. On the downside, break of 113.54 support is needed to invalidate this view. Otherwise, outlook will remain bullish.