Daily Pivots: (S1) 125.17; (P) 125.52; (R1) 125.77; More….
Intraday bias in EUR/JPY remains neutral first. At this point, another rally cannot be ruled out yet. But we’d stay cautious on strong resistance from 55 day EMA (now at 126.11) to limit upside. On the downside, break of 124.36 support will argue that the rebound from 118.62 has completed and turn bias to the downside. Nevertheless, sustained trading above 55 day EMA will pave the way back to 129.25 resistance next.
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 decline from 137.49 for 109.03/114.84 support zone instead.
