Daily Pivots: (S1) 122.05; (P) 122.31; (R1) 122.49; More….
EUR/JPY’s break of 122.10 minor support suggests that corrective recovery from 120.78 has completed at 123.18 already. Intraday bias is turned back to the downside for retesting 120.78 first. Break there will resume whole decline from 127.50 and target 118.62 low next. In case of another rise, we’d continue to expect strong resistance form 123.73 to complete the recovery to bring fall resumption.
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 127.50 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will remain bearish in case of strong rebound.
