Daily Pivots: (S1) 131.07; (P) 131.41; (R1) 131.72; More…
Intraday bias in EUR/JPY remains neutral for the moment. Near term outlook remains bullish with 129.36 support intact and further rise is expected. Break of 132.00 will turn bias back to the upside and target 134.20 fibonacci level next. However, considering bearish divergence condition in 4 hour MACD, break of 129.36 will indicate short term topping and turn bias to the downside for 127.55 support instead.
In the bigger picture, current rise from 109.03 is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). as long as 124.08 resistance turned support holds, further rise is expected to 61.8% retracement of 149.76 to 109.03 at 134.20. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. However, firm break of 124.08 will argue that rise from 109.03 is completed and turn outlook bearish.
