Daily Pivots: (S1) 132.15; (P) 133.32; (R1) 133.98; More…
Intraday bias in EUR/JPY remains neutral first. Outlook remains bullish as long as 131.65 support holds and further rise is still in favor. Sustained break of 134.39 resistance will confirm up trend resumption and target 141.04 long term resistance. However, on the downside, firm break of 131.65 will suggest trend reversal and turn focus to 127.55 key support.
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.
