Daily Pivots: (S1) 121.50; (P) 122.02; (R1) 122.32; More….
EUR/JPY’s break of 121.65 minor support argues that consolidation pattern from 120.7 has completed with three waves to 123.35. Intraday bias is turned back to the downside for 120.78 low first. Decisive break there will resume larger fall from 127.50 to 118.62 low next. On the upside, in case of another rise, upside should be limited below 123.73 to bring down trend resumption.
In the bigger picture, down trend from 137.49 is still in progress with the cross staying inside long term falling channel. Break of 118.62 will extend the fall to 109.48 (2016 low). On the upside, break of 127.50 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will remain bearish in case of strong rebound.
