Daily Pivots: (S1) 129.31; (P) 129.85; (R1) 130.19; More…
EUR/JPY’s recovery was limited at 130.38 and reversed. Intraday bias is turned neutral first. The consolidation from 131.39 could extend further. but downside should be contained by 38.2% retracement of 122.39 to 131.39 at 127.95 to bring rebound. On the upside, break of 131.39 will confirm up trend resumption. However, sustained 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.
