Daily Pivots: (S1) 131.02; (P) 131.46; (R1) 132.25; More…
EUR/JPY’s break of 131.69 resistance confirms resumption of larger rally. Intraday bias is back on the upside. Current rise should target 134.20 fibonacci level next. On the downside, break of 129.36 support is now needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, current rise from 109.03 is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). as long as 124.08 resistance turned support holds, 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. However, firm break of 124.08 will argue that rise from 109.03 is completed and turn outlook bearish.
