Daily Pivots: (S1) 129.87; (P) 130.23; (R1) 130.63; More…
EUR/JPY’s rally resumes by taking out 130.76 and reaches as high as 131.17 so far. Intraday bias is back on the upside. Current rise should now target next long term fibonacci level at 134.20. On the downside, break of 129.83 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, the down trend from 149.76 (2014 high) is completed at 109.03 (2016 low). Current rally from 109.03 should be at the same degree as the fall from 149.76 to 109.03. 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. Medium term outlook will remain bullish as long as 125.80 resistance turned support holds.
