Daily Pivots: (S1) 122.95; (P) 123.48; (R1) 123.74; More….
EUR/JPY’s break of 123.01 support suggests that corrective decline from 127.07 is resuming. Intraday bias is back on the downside for 38.2% retracement of 114.42 to 127.07 at 122.23. Firm break there will confirm this case and target 61.8% retracement at 119.25, which is close to 119.31 key support. On the upside, break of 125.08 resistance is needed to confirm completion of the correction. Otherwise, risk will stay on the downside in case of recovery.
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.
