Daily Pivots: (S1) 170.41; (P) 171.37; (R1) 173.03; More…
EUR/JPY rebounded strongly after diving to 169.69 and intraday bias is turned neutral. Corrective pattern from 173.87 might extend with a another falling leg. But downside should be contained by 38.2% retracement of 161.06 to 173.87 at 168.97. Firm break of 173.87 will resume larger rally from 154.77.
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 168.69) will delay this bullish case.
