Daily Pivots: (S1) 132.48; (P) 133.03; (R1) 133.38; More….
EUR/JPY’s strong break of 132.51 support suggests that rise from 121.63 has completed at 134.11, just ahead of 100% projection of 114.42 to 127.07 from 121.63 at 134.28. Intraday bias is back on the downside. Sustained break of 55 day EMA (now at 131.96) will pave the way to 38.2% retracement of 121.63 to 134.11 at 129.34. On the upside, above 132.87 minor resistance will turn intraday bias neutral first.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. Next target is 137.49 (2018 high). Decisive break there will open up the possibility that it’s indeed resuming the up trend from 94.11 (2012 low). For now, outlook will stay bullish as long as 127.07 resistance turned support holds, in case of pull back.
