Daily Pivots: (S1) 120.35; (P) 120.75; (R1) 121.50; More…
EUR/JPY dips notably today, ahead of 121.32 resistance. But with 120.01 minor support intact, intraday bias stays on the upside first. Current development suggests that corrective fall from 124.08 has completed at 118.23 already, after defending 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). Decisive break of 121.32 should confirm this year and target 124.08 high next. On the downside, though, below 120.01 minor support will dampen this bullish case and turn focus back to 118.23 low.
In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. Strong rebound from 118.45 resistance turned support suggests that it’s still in progress. Break of 124.08 will target 126.09 key resistance level. We’d be cautious on strong resistance there to limit upside. However, sustained break there will be a strong sign of medium term momentum and could target 141.04 resistance next.
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