Daily Pivots: (S1) 122.91; (P) 123.58; (R1) 124.08; More…
EUR/JPY’s break of 123.39 key support now suggests that whole rise from 118.62 has completed at 127.50 already. Intraday bias remains on the downside for further decline. Sustained trading below 123.39 will confirm and pave the way to retest 118.62 low. On the upside, break of 124.29 resistance is needed to be the first sign of short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, current development argues that rebound from 118.62 is merely a correction and has completed at 127.50. EUR/JPY is staying in long term falling channel from 137.49 (2018 high). Decisive break of 118.62 will confirm resumption of this medium term fall and target 109.20 low. For now, this will be the favored case as long as 125.23 resistance holds.
