EUR/JPY’s Larger Retreat

The cross is restricted inside of the corrective pattern from 134.48. Risk sticks to the downside till larger retreat if 134.48 key resistance stands. Following pivot points include: (S1) 131.76; (P) 132.48; (R1) 132.91.

Breach of 131.16 will head towards 38.2% retracement of 114.84 to 134.48 at 126.97 around 127.55 support. Support from that zone will draw recoil.

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.