Daily Pivots: (S1) 169.18; (P) 169.56; (R1) 169.90; More…
Further rally remains in favor in EUR/JPY despite loss of upside momentum. Rise form 164.01, as the second leg of the corrective pattern from 171.58, would target 61.8% projection of 164.01 to 169.38 from 167.31 at 170.62. On the downside, break of 167.31 support should turn bias back to the downside to start the third leg towards 164.01.
In the bigger picture, a medium top could be formed at 171.58 after brief breach of 169.96 (2008 high). As long as 55 W EMA (now at 158.30) holds, fall from there is seen as correcting the rise from 153.15 only. However, sustained break of 55 W EMA will argue that larger scale correction is underway and target 153.15 support.
