EUR/JPY’s Break of Key Support
The cross recommences after break of 131.65 key support. Trading stays neutral. Sustained breach of 131.65 will argue rejection from fibonacci level of 134.20, ending of a top pattern and a short term reversal. 55 day EMA is aligned. Larger fall should head towards key support of 127.55. Following pivot points include: (S1) 131.70; (P) 132.13; (R1) 132.76.
Choppy breach of 134.39/48 resistance zone will argue uptrend restoration. Short term prognosis is cautiously neutral.
A medium term growth from 109.03 has hit the 61.8% retracement of 149.76 to 109.03 at 134.20. Firm breach in that spot will head towards the key long term resistance zone of 141.04/149.76. Breach of 127.55 support will indicate medium term reversal. Prognosis will become bearish towards larger decline for support zone of 114.84/124.08.