EUR/JPY’s Bottom

Technical Reports

The cross is stuck inside of consolidation in 128.94/132.40 diapason. Trading is still neutral. Short term projection stays bearish and another drop is possible, if the whole 132.40 resistance holds. Following pivot points include: (S1) 131.16; (P) 131.32; (R1) 131.60.

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.