Deeper Rally in EUR/JPY
The recoil from 124.61 hit the 130.12 maximum. Trading stays on the upside. The decline from 133.47 to 124.61 is seen as correction. Deeper rally is extending. Following pivot points include: (S1) 128.86; (P) 129.35; (R1) 130.22.
Breach of 131.34 resistance will head towards repeat test of 133.47 maximum. Breach of 127.78 support will confirm ending of the recoil. If EUR/JPY pulls back, the forecast will remain bullish.
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.