Daily Pivots: (S1) 116.56; (P) 117.00; (R1) 117.87; More….
EUR/JPY’s break of 117.91 resistance indicates short term bottoming at 115.86, on bullish convergence condition in 4 hour MACD. Intraday bias is back on the upside. Break of 38.2% retracement of 123.35 to 115.86 at 118.72 will pave the way to 61.8% retracement at 120.48. On the downside, break of 11.7.28 minor support will turn bias back to the downside for retesting 115.86 instead.
In the bigger picture, down trend from 137.49 (2018 high) is still in progress. It’s seen as a falling leg of multi-year sideway pattern. Deeper fall could be seen to 109.48 (2016 low and below). On the upside, break of 123.35 resistance is needed to the first sign medium term reversal. Otherwise, outlook will remain bearish in case of strong rebound.
