Daily Pivots: (S1) 129.00; (P) 129.26; (R1) 129.76; More….
EUR/JPY’s strong break of near term falling channel resistance argues that correction from 134.11 might have completed at 127.91 already. Intraday bias is mildly on the upside for 130.54 resistance first. Sustained break there will affirm this bullish case and target 132.68 resistance next. On the downside, however, below 128.58 minor support will turn bias to the downside for 127.91 first. Break will target 127.07 resistance turned support. That is close to 38.2% retracement of 114.42 to 134.11 at 126.58.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. As long as 127.07 resistance turned support holds, further rise is still expected to retest 137.49 (2018 high). However, firm break of 127.07 will argue that the medium term trend has reversed, deeper fall would be seen to 61.8% retracement of 114.42 to 134.11 at 121.94.
