Daily Pivots: (S1) 125.88; (P) 126.20; (R1) 126.48; More….
EUR/JPY’s breach of 126.03, and break of trend line support, indicates short term topping at 127.48. Intraday bias is back not the downside. Deeper fall would be seen to 38.2% retracement of 121.63 to 127.48 at 125.24. On the upside, break of 127.48 high is now needed to confirm rise resumption. Otherwise, rise 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 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.
