Daily Pivots: (S1) 120.30; (P) 121.11; (R1) 121.56; More…..
EUR/JPY’s corrective fall from 124.42 extended to as low as 120.25. It recovered after breaching 38.2% retracement of 114.42 to 124.43 at 120.60. But there is no clear sign of bottoming yet. Sustained trading below 120.60 will pave the way to 61.8% retracement at 118.24. On the upside, though, break of 122.51 minor resistance will turn bias back to the upside for retesting 124.43.
In the bigger picture, the firm break of 122.87 resistance suggests that whole down trend from 137.49 (2018 high) has completed at 114.42. Current rally should now target 61.8% retracement of 137.49 to 114.42 at 128.67 next. Sustained break there will pave the way to 137.59 (2018 high). This will remain the preferred case for now, as long as 55 day EMA (now at 118.45) holds.
