Daily Pivots: (S1) 132.36; (P) 132.63; (R1) 132.95; More….
EUR/JPY’s rise continue with weak upside momentum as seen in 4 hour MACD. While further rebound could be seen, upside will now likely be limited by 61.8% retracement of 137.49 to 128.94 at 134.22 and below. On the downside, below 132.10 minor support will suggests that the rebound from 128.94 might have completed. And, intraday bias will be turned back to the downside for retesting 128.94 low.
In the bigger picture, price action from 137.49 medium term top are developing into a corrective pattern. Strong support from 55 week 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, with risk of another fall to 38.2% retracement of 109.03 to 137.49 at 126.61 before completion.
