Daily Pivots: (S1) 124.30; (P) 125.80; (R1) 126.99; More….
EUR/JPY’s strong rebound today suggests temporary bottoming at 124.61. That came after meeting 100% projection of 137.49 to 128.94 from 133.47 at 124.92. Intraday bias is turned neutral first and some consolidations could be seen. While further recovery could be seen, near term outlook will remain bearish as long as 128.94 support turned resistance holds. Below 124.71 will resume the fall from 137.49 and target next medium term fibonacci level at 119.90.
In the bigger picture, the case of medium term trend reversal continues to build up. That is rise from 109.03 (2016 low) could have completed at 137.49 already. This is supported by bearish divergence in daily MACD current downside acceleration, as well as the break of 38.2% retracement of 109.03 to 137.49 at 126.61. Deeper decline should be seen to 61.8% retracement at 119.90 and below. This will be the preferred case as long as 128.94 support turned resistance holds.
