Daily Pivots: (S1) 130.52; (P) 131.01; (R1) 131.98; More….
Intraday bias in EUR/JPY is turned neutral with current recovery. Correction from 134.11 could still extend lower. Below 130.02 will target 38.2% retracement of 121.63 to 134.11 at 129.34. We’d expect strong support from there to bring rebound. On the upside, break of 132.63 should suggest that the correction has completed and bring retest of 134.11 high.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. Next target is 137.49 (2018 high). Decisive break there will open up the possibility that it’s indeed resuming the up trend from 94.11 (2012 low). For now, outlook will stay bullish as long as 127.07 resistance turned support holds, in case of pull back.
