Expansion of EUR/JPY’s Corrective Pattern
Trading of the cross is still neutral. Corrective pattern from 134.48 keeps expanding. Risk sticks to the downside till larger retreat if 134.48 key resistance stands. Following pivot points include: (S1) 131.63; (P) 132.09; (R1) 132.47.
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.