EUR/JPY’s Recoil is Bounded

Technical Reports

The recoil from 122.39 reached 125.35 but remained bounded under the resistance zone of 125.80/126.09. Trading stance is neutral. Sharp breach of 125.80/126.09 resistance zone will enlarge the intact lift from 109.03 to 100% projection of 109.03 to 124.08 from 114.84 at 129.89. Following pivot points include: (S1) 124.60; (P) 124.87; (R1) 125.34.

Under 123.65 minor support, the consolidation from 125.80 will prolong. If that happens, 38.2% retracement of 114.84 to 125.80 at 121.61 should fill the downside, leading to recoil and restoration of increase.

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.