Daily Pivots: (S1) 133.90; (P) 134.20; (R1) 134.64; More…
EUR/JPY’s breach of 134.39 resistance argues that medium term rally is resuming. Intraday bias is cautiously on the upside. Sustained trading above 134.39 will confirm and target 141.04 long term resistance. However, break of 133.74 minor support will dampen this view and turn bias back to the downside for 131.65 support instead.
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 reversed and will turn outlook bearish for deeper fall.
