Daily Pivots: (S1) 129.88; (P) 130.39; (R1) 130.71; More….
EUR/JPY rebounds strongly ahead of 129.34 low and a temporary bottom is formed at 129.59. Intraday bias is turned neutral first. Consolidation from 129.34 might extend with another up-leg. But upside should be limited by 38.2% retracement of 137.49 to 129.34 at 132.45 to bring fall resumption eventually. On the downside, decisive break of 129.34 will confirm resumption of whole fall 137.49 and target 126.61 medium term fibonacci level.
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.
