Daily Pivots: (S1) 121.80; (P) 122.26; (R1) 122.51; More….
EUR/JPY drops to as low as 121.79 today. Break of 122.08 support indicates resumption of whole fall from 127.50. Intraday bias is back on the downside. Current fall should target a test on 118.62 low next. On the upside, break of 123.73 resistance is needed to signal 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.
