EUR/JPY’s Consolidation Keeps Prevailing

The consolidation from 125.80 has resumed. Trading state of the cross is neutral. If further drop occurs, 38.2% retracement of 114.84 to 125.80 at 121.61 should fill the downside, leading to recoil and lift restoration.

Firm breach of 126.09 resistance will expand the entire recoil from 109.03 to 100% projection of 109.03 to 124.08 from 114.84 at 129.89.

126.09 support turned resistance is in the spotlight. Choppy breach in that area will argue conclusion of the downtrend from 149.76. Increase from 109.20 must head towards 141.04 resistance and higher. Rejection from 126.09 as well as breach of 114.84 will push the decline from 149.76 through the minimum of 109.20.

More prospectively, actual medium term decrease from 149.76 is considered as a piece of a long term sideway trend from 88.96. Long term trend hasn’t been formed yet. If further decline occurs, firm support at 94.11 will be in focus. If a medium term increase occurs, some sustained resistance at 149.76 might be noticed.