Daily Pivots: (S1) 132.69; (P) 133.15; (R1) 133.84; More…
At this point, EUR/JPY is still staying in range of 131.69/134.39. Intraday bias remains neutral first. With 131.69 support intact, there is no confirmation of reversal yet. Decisive break of 134.39 high will indicate up trend resumption. Next target will be 141.04 long term resistance. Nonetheless, firm break of 131.69 will be an early sign of medium term reversal and will target 127.55 key support level.
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.
