Euro bulls have persistently dominated the yen with the close at the end of July above the major 129.55 Fibonacci highlighting their current control.
The bullish cycle from April’s 114.86 setback low remains very much intact and 14-month momentum is increasingly positive, reinforcing the depth of the present bullish structure.
The monthly close above 129.55, which is 50% retrace of the 149.79 to 109.30 (2014 to 2016) fall, means there is growing scope for a test of 134.32 (61.8% of the same 149.79 to 109.30 drop).
Bulls should continue to keep an eye on 129.55 as a direction gauge, as a failure at the end of August to close above it will be detrimental to the bullish outlook.
