Daily Pivots: (S1) 133.31; (P) 134.57; (R1) 135.33; More….
EUR/JPY’s fall resumed after brief recovery and intraday bias is back on the downside. As noted before, near term trend is likely reversed considering bearish divergence condition in daily MACD. Deeper fall should be seen to 132.04 cluster support first (23.6% retracement of 114.84 to 137.49 at 132.14). Decisive break there will indicate larger reversal. However, above 135.83 minor resistance will turn focus back to 137.49 resistance instead.
In the bigger picture, medium term rise from 109.03 (2016 low) is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). It should be targeting 141.04/149.76 resistance zone. On the downside, break of 132.04 support, however, will be an early sign of trend reversal and will bring deeper fall back to 124.08 key medium term support.
. Decisive break there will indicate larger reversal. However, above 135.83 minor resistance will turn focus back to 137.49 resistance instead. ){kind=link}