Daily Pivots: (S1) 126.38; (P) 126.82; (R1) 127.49; More….
Intraday bias in EUR/JPY remains neutral at this point, with focus on 127.22 resistance. Firm break there will resume larger rally from 114.42. Next target will be 128.67 medium term fibonacci level. In any case, outlook will remain bullish as long as 125.92 support holds, in case of another retreat.
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 121.63 support holds. Decisive break of 127.07 will target 61.8% retracement of 137.49 (2018 high) to 114.42 at 128.67. Sustained trading above there will target 137.49 next. However, firm break of 121.63 will argue that the rise from 114.42 has completed and turn focus back to this low.