EUR/JPY’s Bullish Forecast
Trading character of the cross is neutral. If the entire 133.03 support level is present, forecast remains bullish. Breach of 136.63 will continue medium term uptrend. Breach of 133.03 should reach 55 day EMA and medium term channel support, suggesting medium term reversal. Following pivot points include: (S1) 134.29; (P) 135.21; (R1) 135.89.
Medium term reversal is expected, basing on a bearish divergence in daily MACD. Larger decline should align 132.04 support.
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 132.04 support will indicate medium term reversal. If EUR/JPY pulls back strongly, the prognosis will remain bullish.