EUR/JPY's Medium Term Reversal
Daily Pivots: (S1) 127.16; (P) 127.65; (R1) 128.17;
Trading character of the cross is neutral. The recoil from 124.61 may resume. The support turned resistance of 128.94 should restrict upside and draw a trend reversal.
Under the minor support of 126.29, there should be a repeat test of 124.61 level. Breach will enlarge the intact drop from 137.49 and align another medium term fibonacci level of 119.90.
A medium term trend reversal is possible, considering bearish divergence in daily MACD and actual decisive downside impulse. Strong breach of 38.2% retracement of 109.03 to 137.49 at 126.61 indicates that the intact uptrend from 109.03 has ended at 137.49. Larger fall is expected to align 61.8% retracement at 119.90 and lower.