Daily Pivots: (S1) 126.86; (P) 127.70; (R1) 128.25; More….
A temporary low is in place at 127.14 in EUR/JPY and intraday bias is turned neutral first. Some consolidations could be seen. but outlook will stay bearish as long as 131.34 resistance holds. On the downside, below 127.14 will resume the fall from 133.47 to 126.61 medium term fibonacci level. But based on current momentum, EUR/JPY could dive through this level to 100% projection of 137.49 to 128.94 from 133.47 at 124.92.
In the bigger picture, bearish divergence in daily MACD and current strong downside momentum is raising the chance of medium term trend reversal. Sustained break of 38.2% retracement of 109.03 to 137.49 at 126.61 will argue that whole up trend from 109.03 has completed at 137.49 already. And, deeper decline would be seen to 61.8% retracement at 119.90 and below. Though, strong support from 126.61 and rebound from there would revive medium term bullish for another high above 137.49.
