Daily Pivots: (S1) 126.52; (P) 127.53; (R1) 128.19; More….
EUR/JPY’s decline accelerates to as low as 125.09 so far today and takes out 126.61 medium term fibonacci level decisively. And, 100% projection of 137.49 to 128.94 from 133.47 at 124.92 is almost met without sign of bottoming. Intraday stays on the downside and break of 124.92 will target 161.8% projection at 119.63 next. On the upside, above 126.83 minor resistance will turn intraday bias neutral first.
In the bigger picture, bearish divergence in daily MACD and current strong downside momentum is raising the chance of medium term trend reversal. Sustained break of 38.2% retracement of 109.03 to 137.49 at 126.61 now argues that whole up trend from 109.03 has completed at 137.49 already. And, deeper decline would be seen to 61.8% retracement at 119.90 and below. This will now be the preferred case as long as 128.94 support turned resistance holds.
