EUR/JPY’s Rally Expanded

The rally expanded after a short pull back. Trading of the cross is on the upside towards 61.8% projection of 114.84 to 125.80 from 122.39 at 129.16. Following pivot points include: (S1) 128.22; (P) 128.58; (R1) 129.20.

Sustained resistance between 129.16 as well as the level of medium term projection of 129.89 might lead to a near term top formation. Under 1.2743, larger retreat will head towards 125.80 resistance turned support.

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.