Daily Pivots: (S1) 130.83; (P) 132.35; (R1) 133.20.
EUR/JPY’s fall from 135.47 accelerates today and dives to as low as 129.80 so far. Break of 131.00 support confirms that whole decline from 138.70 has resumed and further fall should now be seen to 100% projection of 138.70 to 131.00 from 135.47 at 127.77 next. On the upside, above 131.90 minor resistance will turn intraday outlook neutral and bring fall consolidation. But upside should be limited well below 135.47 and bring fall resumption.
In the bigger picture, as discussed before, medium term rebound from 112.10 has likely completed at 139.21 already, with bearish divergence condition in daily MACD and RSI, after failing to sustain above 55 weeks EMA. Break of 127.08 key support will confirm this case and target a retest of 112.10 low next. Also that price actions from 113.63 are treated as consolidation to long term decline from 169.96 only. Break of 127.08 will also argue that such consolidation has completed and indicates that the long term down trend is resuming too. On the upside, while another high above 139.21 cannot be ruled out, upside is expected to be limited by 141.73 cluster resistance (50% retracement of 169.96 to 113.63 at 141.79) and finally bring reversal.
Source: ActionForex