EUR/JPY’s Consolidative Trading
Trading of the cross is still neutral. The consolidative trading occurs inside of 1.2894/132.40 diapason. Short term projection stays bearish and another decrease is possible, if the whole 132.40 resistance holds. Following pivot points include: (S1) 130.49; (P) 130.84; (R1) 131.45.
Breach of 128.94 will enlarge the intact decline from 137.49 to the medium term fibonacci of 126.61. Breach of 132.40 should argue formation of a temporary bottom and push trading to the upside towards firmer recoil.
Basing on a bearish divergence condition in weekly MACD, lift from 109.03 has ended at 137.49. Larger decline should hit 38.2% retracement of 109.03 to 137.49 at 126.61. Breach of 137.49 should confirm restoration of a medium term increase.