Daily Pivots: (S1) 121.64; (P) 121.92; (R1) 122.27; More….
EUR/JPY recovered mildly after hitting 121.58 and intraday bias is turned neutral for some consolidations first. Upside of recovery should be limited below 123.73 resistance. Fall from 127.50 is still in progress. Break of 121.58 will resume the decline for a test on 118.62 low next.
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.
