Daily Pivots: (S1) 118.79; (P) 119.09; (R1) 119.51; More…
EUR/JPY’s rebound and breach of 119.85 minor resistance argue that a short term bottom is formed at 118.23, on bullish convergence condition in 4 hour MACD. The development also argue that it has defended 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). Intraday bias is back on the upside for 121.31 resistance. Break will indicate completion of whole corrective fall from 124.08 and turn near term outlook bullish for this resistance. On the downside sustained break of 118.39/45 will argue that whole rise from 109.20 has completed and turn outlook bearish for 61.8% retracement at 114.88 and below.
In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. There is prospect of another rise towards 126.09 key resistance level before completion. But even in that case, we’d expect strong resistance between 126.09 and 141.04 to limit upside, at least on first attempt. Nonetheless, decisive break of 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39) will argue that rise from 109.20 is completed and turn outlook bearish for 61.8% retracement at 114.88 and below.
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