Daily Pivots: (S1) 126.31; (P) 126.57; (R1) 126.87; More….
Intraday bias in EUR/JPY remains neutral first but with today’s steep decline, focus is back on 125.61 resistance turned support. Firm break there will indicate completion of rebound from 123.56. And consolidation from 127.50 is staring the third leg. Intraday bias will then be turned down to the downside for 123.65 support. On the upside, though, above 126.79 will target 127.50 key resistance.
In the bigger picture, there is no confirmation of completion of the down trend from 137.49 (2018 high) yet. In case of an extension, break of 118.62 will target 109.03/114.84 long term support zone. However, break of 127.50 will solidify the case of medium term bullish reversal. Further decisive break medium term channel resistance will affirm reversal and target 133.12 key resistance and above.