Daily Pivots: (S1) 128.27; (P) 128.54; (R1) 129.09; More….
EUR/JPY’s rebound from 127.36 resumed by taking out 129.09 minor resistance. The development also raises the chance that fall from 133.44, as well as corrective pattern from 134.11 have completed. Intraday bias is back on the upside. Sustained trading above 55 day EMA (now at 129.51) will affirm this bullish case and target 133.44/134.11 resistance zone. On the downside, break of 127.99 minor support will resume fall from 133.44 through 127.36 to 126.58 medium term fibonacci level.
In the bigger picture, as long as 38.2% retracement of 114.42 (2020 low) to 134.11 at 126.58 holds, up trend from 114.42 is still in favor to continue. Break of 134.11 will target long term resistance at 137.49 (2018 high). However, sustained break of 126.58 will raise the chance of medium term bearish reversal. In this case, deeper decline would be seen to 61.8% retracement at 121.94, and possibly below.
