Daily Pivots: (S1) 131.97; (P) 132.60; (R1) 132.93; More….
EUR/JPY break of 132.03 minor support suggests that corrective rise from 128.94 has completed at 133.47 already, on bearish divergence condition in 4 hour MACD. Intraday bias is turned back to the downside for retesting 128.94 low first. Break will resume whole decline3 from 137.49. In case of another rise, we expect strong resistance from 61.8% retracement of 137.49 to 128.94 at 134.22 to limit upside and bring fall resumption eventually.
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.
