Daily Pivots: (S1) 130.91; (P) 131.60; (R1) 132.17; More….
EUR/JPY’s break of 130.95 minor support suggests that corrective recovery from 129.34 has completed at 132.40 already. That’s slightly ahead of 38.2% retracement of 137.49 to 129.34 at 132.45. Intraday bias is back on the downside for retesting 129.34 low first. Break will resume whole fall from 137.49 and target 126.61 medium term fibonacci level. In case of another rise, we’d continue to expect strong resistance from 132.45 to limit upside.
In the bigger picture, current development argues that rise from 109.03 (2016 low) has completed at 137.49, on bearish divergence condition in weekly MACD. Deeper fall should be seen to 38.2% retracement of 109.03 to 137.49 at 126.61 first. On the upside, break of 137.49 is needed to confirm medium term rise resumption. Otherwise, risk will now stay on the downside even in case of strong rebound.
