Intraday bias in EUR/JPY remains on the downside with 130.93 minor resistance intact. As noted before, rebound from 124.95 has completed at 132.73 already. Fall from 132.73 is viewed as the third leg of the consolidation from 133.80. Deeper decline should be seen to 128.01 support first. Break will confirm this bearish case and target 124.95 and below. On the upside, above 130.93 minor resistance will turn bias neutral. But risk will stay on the downside as long as 132.73 resistance holds.
In the bigger picture, current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Correction from there could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). Strong support would be seen there, at least on initial attempt. But, break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.
IMOH, Clement I.
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