Daily Pivots: (S1) 120.06; (P) 120.72; (R1) 121.27; More….
EUR/JPY is still holding above 119.99 cluster support (38.2% retracement of 115.86 to 122.65 at 120.05) for now. Intraday bias remains neutral first. Considering bearish divergence condition in daily MACD, rebound from 115.86 could have completed at 122.65, ahead of medium term channel resistance. Firm break of 119.99 should confirm and bring deeper fall to 61.8% retracement at 118.45 and below. Nevertheless, strong rebound from current level will retain near term bullishness and turn focus back to 122.65 high.
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 124.49) to limit upside. However, sustained break of the channel resistance will carry larger bullish implication and target 127.50 key resistance next.
