Daily Pivots: (S1) 125.24; (P) 126.15; (R1) 126.74; More….
EUR/JPY’s fall resumed by taking out 125.52 and reaches as low as 125.16 so far. Intraday bias is back on the downside. Current decline from 133.12 should target 124.08/89 support zone next. On the upside, break of 127.09 resistance is needed to indicate short term bottoming. Otherwise, near term outlook will remain bearish even in case of recovery.
In the bigger picture, with the current decline, focus would be back on 124.08 key resistance turn supported holds. Decisive break of 124.08 will argue that such rise from 109.03 (2016 low) 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. Meanwhile, strong rebound from 124.08, followed by break of 129.25 resistance will retain medium term bullishness. Rise could 109.03 could still extend through 137.49 resistance in that case.
