Daily Pivots: (S1) 120.88; (P) 121.99; (R1) 121.45; More…
Outlook in EUR/JPY remains unchanged and intraday bias stays neutral for consolidation above 120.05. Another recovery could be seen. But outlook remains bearish as long as 122.32 resistance holds. On the downside, break of 120.05 will resume the decline from 127.50 for retesting 118.62 low. Though, break of 122.32 would indicate short term bottoming and bring stronger rebound to 123.35 resistance and above.
In the bigger picture, down trend from 137.49 is still in progress with the cross staying well inside long term falling channel, and below falling 55 week EMA. 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.
