Daily Pivots: (S1) 171.04; (P) 173.24; (R1) 174.90; More…
EUR/JPY recovered after falling sharply to 171.50. While further decline might be seen, strong support is expected from 170.87 resistance turned support to bring rebound. That should set the range for consolidations below 175.41 short term top. Nevertheless, firm break of 170.87 will argue that larger correction is already underway.
In the bigger picture, long term up trend is still in progress. Next target is 100% projection of 139.05 to 164.29 from 153.15 at 178.38. For now outlook will stay bullish as long as 170.87 resistance turned support holds, even in case of deep pullback. However, firm break of 170.87 will bring deeper fall to 167.52 support. Decisive break there will confirm that larger correction in in progress for 153.15/164.29 support zone.
