Daily Pivots: (S1) 122.48; (P) 122.95; (R1) 123.32; More….
EUR/JPY’s decline resumed after brief consolidation and reaches as low as 122.08 so far. Intraday bias is back on the downside. Current fall from 127.50 should extend to retest 118.62 low. On the upside, break of 123.61 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, current development argues that rebound from 118.62 is merely a correction and has completed at 127.50. EUR/JPY is staying in long term falling channel from 137.49 (2018 high). Decisive break of 118.62 will confirm resumption of this medium term fall and target 109.20 low. For now, this will be the favored case as long as 125.23 resistance holds.