Daily Pivots: (S1) 128.73; (P) 129.41; (R1) 129.77; More….
Intraday bias in EUR/JPY stays on the downside for the moment. Fall from 131.59 is seen as part of the corrective pattern from 134.11. Deeper decline would be seen to 127.36 support first. Break will target 126.58 fibonacci level. On the upside, above 130.07 minor resistance will turn intraday bias neutral first. But risk will stay on the downside for now as long as 131.59 resistance holds.
In the bigger picture, as long as 38.2% retracement of 114.42 (2020 low) to 134.11 at 126.58 holds, up trend from 114.42 is still in favor to continue. Break of 134.11 will target long term resistance at 137.49 (2018 high). However, sustained break of 126.58 will raise the chance of medium term bearish reversal. In this case, deeper decline would be seen to 61.8% retracement at 121.94, and possibly below.
