Daily Pivots: (S1) 125.41; (P) 125.81; (R1) 126.42; More….
Intraday bias in EUR/JPY remains mildly on the upside at this point. Corrective pull back from 127.48 should have completed at 125.07,m after hitting 38.2% retracement of 121.63 to 127.48 at 125.24. Further rise should be seen to retest 127.48 resistance. On the downside, though, firm break of 125.07 will extend the correction to 61.8% retracement at 123.86.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. Further rise is expected as long as 121.63 support holds. Decisive break of 127.07 will target 61.8% retracement of 137.49 (2018 high) to 114.42 at 128.67. Sustained trading above there will target 137.49 next. However, firm break of 121.63 will argue that the rise from 114.42 has completed and turn focus back to this low.
