Daily Pivots: (S1) 171.52; (P) 172.71; (R1) 173.36; More…
Intraday bias in EUR/JPY is turned neutral first with current steep retreat. Further rise could still be seen as long as 171.35 support holds. Break of 173.87 should pave the way to retest 175.41 high. However, considering bearish divergence condition in 4H MACD, decisive break of 171.35 will confirm short term topping, after rejection by 138.2% projection of 154.77 to 164.16 from 161.06 at 174.03. Deeper pullback should then be seen towards 55 D EMA (now at 168.62).
In the bigger picture, considering current strong momentum as seen in the rally from 154.77, corrective pattern from 175.41 could have already completed. Decisive break there will confirm long term up trend resumption. Next target is 61.8% projection of 124.37 to 175.41 from 154.77 at 186.31. However, rejection by 175.41, followed by firm break of 55 D EMA (now at 168.62) will delay this bullish case.
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