Daily Pivots: (S1) 120.85; (P) 121.39; (R1) 121.69; More….
EUR/JPY continues to lose downside momentum as seen in 4 hour MACD. But further decline is expected with 121.92 minor resistance intact. Firm break of 120.78 will resume the larger decline from 127.50 will target 118.62 low next. On the upside, above 122.17 minor resistance delay the bearish case, turn intraday bias to the upside to extend the consolidation from 120.78.
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.
