Daily Pivots: (S1) 130.57; (P) 131.07; (R1) 131.45; More…
A temporary top is in place at 131.69 and intraday bias is turned neutral first. Near term outlook in EUR/JPY will remain bullish as long as 127.55 support holds. Break of 131.69 will extend the larger rally to 61.8% projection of 122.39 to 131.39 from 127.55 at 133.11 next.
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. However, firm break of 124.08 will argue that rise from 109.03 is completed and turn outlook bearish.
