Daily Pivots: (S1) 121.10; (P) 121.68; (R1) 122.34; More…
EUR/JPY continues to engage in choppy sideway trading below 124.08 resistance. Intraday bias stays neutral for the moment. Another fall cannot be ruled out as the consolidation extends. On the downside, below 120.54 will target 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). In that case, we’d expect strong support from there to bring rebound. On the upside, break of 124.08 will extend the larger rally from 109.20 to 126.09 key resistance next.
In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. There is prospect of another rise towards 126.09 key resistance level before completion. But even in that case, we’d expect strong resistance between 126.09 and 141.04 to limit upside, at least on first attempt.
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