Daily Pivots: (S1) 122.74; (P) 124.31; (R1) 125.12; More….
EUR/JPY dived to as low as 118.62 as down trend extended. Some consolidations could likely be seen after climax selling. But in any case, near term outlook will remain bearish 123.87 minor resistance holds. Another fall is still expected to revisit 119.90 fibonacci level first. Firm break there will target next projection level at 112.28. On the upside, touching of 123.87 will indicate short term bottoming and bring lengthier consolidation before staging another fall.
In the bigger picture, the strong break of 124.08 key support suggests that medium term rebound from 109.03 (2016 low) has completed at 137.49 already, with corrective structure. Fall from 137.39 is seen as a medium term fall, resuming the decline from 149.76 (2014 high). Such decline should break through 109.03 low next. This will remain the preferred case as long as 124.61 support turned resistance holds.
