EUR/JPY's Recoil Hits Maximum

Technical Reports

The recoil from temporary bottom of 129.22 hit 131.02 maximum. A 4 hour 55 EMA has been reached. Trading is on the upside to another increase for 55 day EMA of 131.62. Firm resistance under 133.47 resistance should cause a decline restoration. Following pivot points include: (S1) 130.14; (P) 130.41; (R1) 130.83.

Under the minor support of 129.99, trading will turn up on the downside to 128.94. Breach will extend the corrective decrease from 137.49 and align 61.8% projection of 137.49 to 128.94 from 133.47 at 128.18.

While price moves from 137.49 are corrective, deeper decline is awaited. But still, downside should be restrained by a firm support from 38.2% retracement of 109.03 to 137.49 at 126.61, taming the downside and drawing recoil. Uptrend from 109.03 should be progressing. Strong breach of 126.61 will indicate trend reversal and align the resistance turned support of 124.08.