EUR/JPY Broadly Dropped
The cross has broadly fell after touching 130.26 level. Trading is now neutral to consolidation. While the minor support of 127.78 is present, further surge is possible. Over 130.26, EUR/JPY will align 131.34. Following pivot points include: (S1) 129.06; (P) 129.67; (R1) 130.04.
Breach will head towards the key resistance of 133.47. Breach of 127.78 will argue that the recoil is finished and trading will turn up on the downside to repeat test of 124.61.
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.