Daily Pivots: (S1) 131.96; (P) 132.14; (R1) 132.49; More….
EUR/JPY’s rally resumed after brief consolidation and reaches as high as 132.74 so far. Intraday bias is back on the upside and rebound from 128.94 should target 61.8% retracement of 137.49 to 128.94 at 134.22 and above. On the downside, below 131.79 minor support will turn intraday bias neutral first.
In the bigger picture, price action from 137.49 medium term top are developing into a corrective pattern. Strong support from 55 EMA (now at 129.91) suggests that the first leg has completed at 128.94 already. Nonetheless, break of 137.49 is needed to confirm resumption of the rise from 109.03 (2016 low). Otherwise, we’d expect more corrective range trading another, with risk of another fall to 38.2% retracement of 109.03 to 137.49 at 126.61 before completion.