Daily Pivots: (S1) 132.58; (P) 132.81; (R1) 133.11; More….
EUR/JPY drew support from 4 hour 55 EMA and rebounded. But upside is limited below 133.42 so far. Intraday bias remains neutral first, but further rally is expected. On the upside, break of 133.42 will extend larger up trend to 100% projection of 114.42 to 127.07 from 121.63 at 134.28. In case of another retreat, downside should be contained well above 130.97 support to bring rally resumption.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. Further rise is expected as long as 127.07 resistance turned support holds. Next target is 137.49 (2018 high). Decisive break there will open up the possibility that it’s indeed resuming the up trend from 94.11 (2012 low).
