Daily Pivots: (S1) 122.51; (P) 122.74; (R1) 122.95; More….
A temporary low is in place at 122.08 in EUR/JPY and intraday bias is turned neutral for consolidations. Upside of recovery should be limited by 124.09 support turned resistance to bring fall resumption On the downside, break of 122.08 will extend the decline from 127.05 to retest 118.62 low.
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.
