EUR/JPY Backed Down

The cross has backed down after defending 130.76. EUR/JPY has formed a temporary top. Trading tone is neutral towards consolidation. If 127.99 support is present, short term prognosis stays bullish. Following pivot points include:(S1) 130.14; (P) 130.45; (R1) 130.96.

Over 130.76, the cross will head towards 100% projection of 114.84 to 125.80 from 122.39 at 133.35. According to bearish divergence in 4 hour MACD, breach of 127.99 will draw larger retreat towards 55 day EMA.

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.