Daily Pivots: (S1) 120.83; (P) 121.43; (R1) 121.86; More….
While EUR/JPY drops sharply, it’s holding above 119.99 support. Price actions from 122.65 are seen as a consolidation pattern and intraday bias stays neural. On the upside, break of 122.65 will resume the rise form 115.86 to key channel resistance (now at 124.33). However, sustained break of 119.99 support will argue that rise from 115.86 has completed. Intraday bias will be turned back to the downside for 119.24 support first.
In the bigger picture, EUR/JPY is still staying in the falling channel established since 137.49 (2018 high). Rise from 115.86 is seen as a corrective rise for the moment. Strong resistance could be seen at falling channel resistance (now at 124.72) to limit upside. However, sustained break of the channel resistance will carry larger bullish implication and target 127.50 key resistance next.
