Daily Pivots: (S1) 170.86; (P) 171.60; (R1) 172.14; More…
EUR/JPY’s break of 171.35 support suggests short term topping at 173.87, on bearish divergence condition in 4H MACD. Fall from there is seen as corrective the rally from 161.06. Intraday bias is now on the downside for 38.2% retracement of 161.06 to 173.87 at 168.97. For now, near term outlook is neutral as long as 173.87 resistance holds, in case of recovery.
In the bigger picture, considering current strong momentum as seen in the rally from 154.77, corrective pattern from 175.41 could have already completed. Decisive break there will confirm long term up trend resumption. Next target is 61.8% projection of 124.37 to 175.41 from 154.77 at 186.31. However, rejection by 175.41, followed by firm break of 55 D EMA (now at 168.69) will delay this bullish case.
