Daily Pivots: (S1) 172.16; (P) 172.59; (R1) 172.94; More…
EUR/JPY’s steep decline and strong break of 171.53 support suggests that rebound from 169.69 has completed. Corrective pattern from 173.87 is extending with fall from 172.99 as the third leg. Intraday bias is back on the downside for 169.69. Strong support is expected from 38.2% retracement of 161.06 to 173.87 at 168.97 to complete the pattern. On the upside, above 172.99 will bring retest of 173.87.
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 of 154.77 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 169.64) will delay this bullish case.
