Daily Pivots: (S1) 128.01; (P) 128.78; (R1) 129.33; More…
EUR/JPY’s correction from 131.39 extends lower today and intraday bias remains on the downside for 38.2% retracement of 122.39 to 131.39 at 127.95. At this point, we’d expect strong support from 127.95 to contain downside and bring rebound. Above 129.54 minor resistance will turn bias back to the upside for retesting 131.39. However, firm break of 127.95 will bring deeper decline to 125.80 cluster support (61.8% retracement at 125.82) before completing the correction.
In the bigger picture, the down trend from 149.76 (2014 high) is completed at 109.03 (2016 low). Current rally from 109.03 should be at the same degree as the fall from 149.76 to 109.03. Further rise is expected to 61.8% retracement of 149.76 to 109.03 at 134.20. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. Medium term outlook will remain bullish as long as 124.08 resistance turned support holds.
