Daily Pivots: (S1) 116.56; (P) 117.00; (R1) 117.87; More….
EUR/JPY’s recovery from 115.86 extends higher today but stays below 117.91 resistance. Intraday bias remains neutral and further decline is still expected. On the downside, break of 115.86 will resumed recent down trend to 114.84 medium term support next. However, firm break of 117.91 will indicate short term bottoming. Stronger rebound would be seen to 55 day EMA (now at 119.47) and above.
In the bigger picture, down trend from 137.49 (2018 high) is still in progress. It’s seen as a falling leg of multi-year sideway pattern. Deeper fall could be seen to 109.48 (2016 low and below). On the upside, break of 123.35 resistance is needed to the first sign medium term reversal. Otherwise, outlook will remain bearish in case of strong rebound.