Daily Pivots: (S1) 130.90; (P) 131.21; (R1) 131.62; More….
EUR/JPY’s rally resumes after brief consolidation and breaches 131.52 temporary top. Intraday bias is turned back to the upside. Current rise from 14.61 should target 100% projection of 124.61 to 130.33 from 127.13 at 132.85 next. On the downside, below 130.79 minor support will turn bias to the downside and bring deeper retreat, possibly to 4 hour 55 EMA (now at 130.22) and below. But downside should be contained by 129.55 resistance turned support to bring another rally.
In the bigger picture, the strong break of channel resistance from 137.49 suggests that the decline from there as completed. The three wave structure suggests that it’s a correction. With 124.08 key resistance turned support intact, medium term bullishness is also retained. Break of 133.47 will affirm this bullish case and target 137.49 and above. This will now be the favored case as long as 127.13 support holds.