Daily Pivots: (S1) 125.02; (P) 125.60; (R1) 125.94; More….
EUR/JPY retreated deeply after hitting 4 hour 55 EMA. Intraday bias is turned neutral first. On the upside, above 125.19 will bring retest of 127.48 high. However, break of 125.07 will resume the correction from 127.48. Intraday bias will be turned back to the downside for 61.8% retracement of 121.63 to 127.48 at 123.86.
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.