Daily Pivots: (S1) 120.01; (P) 120.56; (R1) 121.11; More…
EUR/JPY’s rise from 118.23 accelerates to as high as 122.34 so far today and intraday bias remains on the upside. As noted before, corrective fall from 124.08 has completed at 118.23 after defending 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). Rise from there should target a test on 123.30/124.08 resistance zone. Break will extend larger rally from 109.20 to next key resistance at 126.09. On the downside, below 121.18 minor support will turn intraday bias neutral first. But pull back should be contained above 120.01 support and bring another rally.
In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. Strong rebound from 118.45 resistance turned support suggests that it’s still in progress. Break of 124.08 will target 126.09 key resistance level. We’d be cautious on strong resistance there to limit upside. However, sustained break there will be a strong sign of medium term momentum and could target 141.04 resistance next.
