EUR/JPY’s Medium Term Projection Level

The cross has significantly declined to 127.47. The breach of 126.09 key resistance indicates bullish sentiment. Trading is on the upside. Following pivot points include: (S1) 125.58; (P) 126.52; (R1) 128.32.

Actual rally should head towards 61.8% projection of 114.84 to 125.80 from 122.39 at 129.16, which is near medium term projection level of 129.89. Under 126.47 minor support, trading will turn up in the neutral position and EUR/JPY will pull back. Then, the next rally will occur.

The breach of 126.09 support turned will argue conclusion of the downtrend from 149.76 at 109.03. Increase from 109.03 must head towards 100% projection of 109.03 to 124.08 from 114.84 at 129.89. Breach in that area will align 61.8% retracement of 149.76 to 109.03 at 134.20 and higher. If 122.39 support is present, medium term prognosis stays bullish.