Daily Pivots: (S1) 125.56; (P) 126.45; (R1) 127.91; More….
EUR/JPY’s rebound from 124.61 is still in progress and further rise could be seen. But upside should be limited by 128.94 support turned resistance to bring fall resumption. On the downside, below 126.45 minor support will bring retest of 124.61 first. Break will resume whole fall from 137.49 and target next medium term fibonacci level at 119.90.
In the bigger picture, the case of medium term trend reversal continues to build up. That is rise from 109.03 (2016 low) could have completed at 137.49 already. This is supported by bearish divergence in daily MACD current downside acceleration, as well as the break of 38.2% retracement of 109.03 to 137.49 at 126.61. Deeper decline should be seen to 61.8% retracement at 119.90 and below. This will be the preferred case as long as 128.94 support turned resistance holds.
