Daily Pivots: (S1) 124.29; (P) 124.47; (R1) 124.67; More…
EUR/JPY drops sharply to as low as 123.36 so far today. Intraday bias is now on the downside with focus on 123.39 key support. Sustained break will indicate larger reversal. That is rise from 118.62 has completed at 127.50 already. In such case, deeper fall should be seen to retest 118.62 low. On the upside, rebound from the current level, followed by break of 125.23 minor resistance, will turn bias back to the upside for 126.79 resistance instead.
In the bigger picture, there is no confirmation of completion of the down trend from 137.49 (2018 high) yet. Break of 123.39 support will favor of down trend extension and target 118.62 low. 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. On the downside, sustained break of 123.39 will add to the case that down trend from 137.49 is still in progress for another low below 118.62.
