Daily Pivots: (S1) 124.07; (P) 124.48; (R1) 125.08; More….
Intraday bias in EUR/JPY remains mildly on the upside at this point. Rise from 122.37 should target a test on 127.07 high. As 38.2% retracement of 114.42 to 127.07 at 122.23 was defended well, we’d expect larger rebound from 114.42 to resume later, with a break of 127.07. On the downside, though, break of 123.84 minor support will suggest that the recovery from 122.37 has completed. Intraday bias will be turned back to the downside for 122.23 fibonacci support.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. Further rise is expected as long as 119.31 support holds. Break of 127.07 will target 61.8% retracement of 137.49 (2018 high) to 114.42 at 128.67 next. However, firm break of 119.31 will argue that the rise from 114.42 has completed and turn focus back to this low.
