Daily Pivots: (S1) 129.70; (P) 130.07; (R1) 130.57; More….
EUR/JPY’s decline continues today and reaches as low as 129.34 so far. Intraday bias remains on the downside. Current fall from 137.49 is starting 126.61 medium term fibonacci level next. We’ll tentatively look for bottoming signal there. On the upside, above 130.51 minor resistance will indicate temporary bottoming and bring consolidations, before staging another decline.
In the bigger picture, current development argues that rise from 109.03 has completed at 137.49, on bearish divergence condition in weekly MACD. Deeper fall should be seen to 38.2% retracement of 109.03 to 137.49 at 126.61 first. On the upside, break of 137.49 is needed to confirm medium term rise resumption. Otherwise, risk will now stay on the downside even in case of strong rebound.
