Daily Pivots: (S1) 131.90; (P) 132.42; (R1) 132.70; More…
Intraday bias in EUR/JPY remains neutral at this point. But again, it’s getting more likely that 134.39 is a medium term top and a downside breakout could be seen soon. Focus is on 131.69 support. Decisive break there will be an early sign of medium term reversal and will target 127.55 key support level. On the upside, firm break of 134.39 is needed to confirm up trend resumption. Otherwise, more corrective trading would be seen.
In the bigger picture, medium term rise from 109.03 (2016 low) is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). 61.8% retracement of 149.76 to 109.03 at 134.20 is already met. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. However, break of 127.55 support will argue that the medium term trend has reversal and will turn outlook bearish for deeper fall.
