Daily Pivots: (S1) 129.88; (P) 130.39; (R1) 130.71; More….
Intraday bias in EUR/JPY remains on the downside for 129.34 low. Decisive break there will confirm resumption of whole fall 137.49 and target 126.61 medium term fibonacci level. In case the corrective pattern from 129.34 extends with one more rise. we’d continue to expect strong resistance from 38.2% retracement of 137.49 to 129.34 at 132.45 to limit upside.
In the bigger picture, current development argues that rise from 109.03 (2016 low) 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.
