Daily Pivots: (S1) 129.06; (P) 129.67; (R1) 130.04; More….
EUR/JPY drops sharply after hitting 130.26 and intraday bias is turned neutral for some consolidations. Another rise is expected long as 127.78 minor support holds. Above 130.26 will target 131.34 first. And break will target 133.47 key resistance next. However, break of 127.78 will indicate completion of the rebound and turn bias to the downside for retesting 124.61 instead.
In the bigger picture, as long as 124.08 resistance turned support holds, medium term rise from 109.03 (2016 low) is still in progress and another high above 137.49 would be seen. Nonetheless, considering bearish divergence condition in daily MACD, decisive break of 124.08 will confirm medium term reversal and target 61.8% retracement of 109.03 to 137.49 at 119.90 and below.
