Daily Pivots: (S1) 121.39; (P) 121.60; (R1) 121.89; More….
EUR/JPY’s recovery from 120.78 extends higher today but we’d still see it as a correction. Thus, intraday bias remains neutral and upside should be limited below 123.73 resistance to bring fall resumption. On the downside, break of 120.78 will resume the fall from 127.50 and target 118.62 low next.
In the bigger picture, down trend from 137.49 is still in progress with the cross staying inside long term falling channel. Break of 118.62 will extend the fall to 109.48 (2016 low). On the upside, break of 123.73 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will remain bearish in case of strong rebound.
