Daily Pivots: (S1) 125.58; (P) 126.52; (R1) 128.32; More…
EUR/JPY retreats after hitting 127.84. A temporary top is likely formed and intraday bias is turned neutral first. Downside of consolidation should be contained by 124.64 support to bring another rally. Above 127.84 will extend the rise from 114.84 to 61.8% projection of 114.84 to 125.80 from 122.39 at 129.16 first. That’s also close to medium term projection level at 129.89.
In the bigger picture, the break of 126.09 support turned resistance should have confirmed completion of down trend form 149.76 (2014 high), at 109.03 (2016 low). Current rise from 109.03 should target 100% projection of 109.03 to 124.08 from 114.84 at 129.89 first. Break there will pave the way to 61.8% retracement of 149.76 to 109.03 at 134.20 and above. Medium term outlook will now remain bullish as long as 122.39 support holds.
