Daily Pivots: (S1) 130.36; (P) 130.85; (R1) 131.12; More….
EUR/JPY’s fall from 137.49 resumed by diving through 129.22 and then 128.94 support. It reaches as low as 128.22 so far, just inch above 61.8% projection of 137.49 to 128.94 from 133.47 at 128.18. Intraday bias is now on the downside for deeper fall, possibly further to 126.61 medium term fibonacci level. On the upside, above 129.52 minor resistance will turn intraday bias neutral first. But recovery should be limited below 131.34 resistance to bring another decline.
In the bigger picture, for now, price actions from 137.49 are viewed as a corrective pattern only. Hence, while deeper decline would be seen, strong support is expected at 38.2% retracement of 109.03 to 137.49 at 126.61 to contain downside and bring rebound. Up trend from 109.03 (2016 low) is expected to resume afterwards. Though, sustained break of 126.61 will be an important sign of trend reversal and will turn focus to 124.08 resistance turned support.
