Daily Pivots: (S1) 129.41; (P) 130.15; (R1) 130.55; More….
EUR/JPY’s fall from 133.13 resumed by breaking 130.03 temporary low and intraday bias is back on the downside. outlook is unchanged that corrective pattern from 134.11 is seen as extending with another falling leg. Deeper decline should be seen to 128.23 support first. Break there will target 127.36 support and possibly first to 126.58 medium term fibonacci level. For now, risk will stay on the downside as long as 131.89 minor resistance holds, in case of recovery.
In the bigger picture, price actions from 134.11 are currently seen as a consolidation pattern only. 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 bearish reversal. In this case, deeper decline would be seen to 61.8% retracement at 121.94, and possibly below.
