Daily Pivots: (S1) 120.14; (P) 120.69; (R1) 121.02; More…
EUR/JPY’s break of 120.05 indicates resumption of recent decline from 127.50. Intraday bias back on the downside for 118.62 low. Break will resume long term down trend. On the upside, break of 121.38 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, down trend from 137.49 is still in progress with the cross staying well inside long term falling channel, and below falling 55 week EMA. 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.
