Daily Pivots: (S1) 124.36; (P) 124.71; (R1) 125.07; More….

Intraday bias in EUR/JPY is turned neutral with 4 hour MACD crossed below signal line. At this point, we’re still looking for strong resistance around 124.61 to limit the rebound from 118.62. And, on the downside, break of 123.40 minor support will turn bias back to the downside for retesting 118.62 low first. However, sustained break of 124.61 will extend the rebound to 127.09 resistance next.

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In the bigger picture, medium term rebound from 109.03 (2016 low) has completed at 137.49 already, with corrective structure. Fall from 137.39 is seen as a medium term fall, resuming the decline from 149.76 (2014 high). Such decline should break through 109.03 low next. This will remain the preferred case as long as 124.61 support turned resistance holds. Sustained break of 124.61 will mix up the outlook and we’ll reassess on the final structure of the rebound from 118.62.

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