Daily Pivots: (S1) 125.24; (P) 126.15; (R1) 126.74; More….
EUR/JPY dives to as low as 123.88 so far today and is now pressing 124.08 key support. Intraday bias remains on the downside. Decisive break of 124.08 will carry larger bearish implication and target 119.90 fibonacci level next. On the upside, break of 125.52 support turned resistance is needed to signal short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, with the current decline, focus would be back on 124.08 key resistance turn support. Decisive break of 124.08 will argue that rise from 109.03 (2016 low) has completed and turn outlook bearish. In that case, deeper fall would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90. Meanwhile, strong rebound from 124.08, followed by break of 129.25 resistance will retain medium term bullishness. Rise could 109.03 could still extend through 137.49 resistance in that case.
