Daily Pivots: (S1) 126.24; (P) 126.67; (R1) 127.36; More….
EUR/JPY’s recovery from 125.52 extends higher but as it’s seen as a correction, intraday bias remains neutral first. Near term outlook will also say bearish as long as 127.63 resistance holds. On the downside, below 125.52 will target 124.08/89 support zone next.
In the bigger picture, with the current decline, focus would be back on 124.08 key resistance turn supported holds. As long as 124.08 key resistance turn supported holds, larger up trend from 109.03 (2016 low) could still resume. Firm break of 137.49 structural resistance will target 141.04/149.76 resistance zone next. However, decisive break of 124.08 will argue that such rise from 109.03 has completed and turn outlook bearish. In that case, deeper fall would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90.
