Daily Pivots: (S1) 128.72; (P) 129.13; (R1) 129.95; More….
Focus is now on 129.65 minor resistance in EUR/JPY with current rebound. Firm break there will bring stronger rise to 130.73 resistance. Sustained break there will argue that whole pattern from 134.11 has completed and turn near term outlook bullish for retesting this high. On the downside, break of 127.91 will resume the fall from 134.11 and target 127.07 resistance turned support. Sustained break there will carry larger bearish implication and pave the way to 121.91 fibonacci level.
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.
