Daily Pivots: (S1) 116.89; (P) 117.44; (R1) 117.87; More…..
Intraday bias in EUR/JPY remains neutral at this point and further rise is mildly in favor. On the upside, break of 118.52 will resume the rebound from 114.42 and target 121.14 resistance next. However, break of 116.85 resistance turned support, and sustained trading below 4 hour 55 EMA (now at 117.03), will argue the rebound has completed. Intraday bias will be turned back to the downside for 115.32 support for confirmation.
In the bigger picture, there is no clear sign of trend reversal yet. EUR/JPY is staying well inside falling channel and below falling 55 week EMA. Deeper fall could be seen to retest 109.48 (2016 low) next. On the upside, break of 122.87 resistance is needed to confirm medium term bottoming. Otherwise, outlook will stay bearish in case of rebound.