Daily Pivots: (S1) 123.89; (P) 124.28; (R1) 124.83; More….
EUR/JPY is staying in range below 125.09 temporary top. But based on overall development in yen crosses, EUR/JPY’s rebound from 118.62 will likely turn out to be stronger than expected. On the upside, break of 125.09 will bring further rise to 55 day EMA (now at 126.76) and above. On the downside, break of 123.40 minor support will turn bias back to the downside for retesting 118.62 low first.
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 possibly just the second leg of the corrective pattern from 109.03. Break of 133.12 resistance should start the third leg to 137.49 and above. Nevertheless, break of 118.62 will resume the down trend for 137.49 for 109.03/114.84 support zone instead.
