Daily Pivots: (S1) 119.79; (P) 120.08; (R1) 120.48; More…
EUR/JPY’s fall from 122.88 resumed by taking out 119.31 and reaches as low as 119.00 so far. Intraday bias is back on the downside for 118.23 support. Overall, price actions from 124.08 are seen as a consolidation pattern. Hence we’d expect strong support around 118.45 key cluster support level (38.2% retracement of 109.20 to 124.08 at 118.39) to contain downside and bring rebound. On the upside, above 120.43 minor resistance will turn bias back to the upside for 122.88 resistance.
In the bigger picture, we’re holding on to the view that medium term rise from 109.20 is still in progress. Focus is on 126.09 key resistance level. Sustained break will confirm completion of the whole decline from 149.76. And rise from 109.20 is of the same degree as the fall from 149.76. In such case, further rally would be seen to 104.04 resistance and possibly above before topping. Meanwhile, rejection from 126.09, or firm break of 118.45 cluster support, will likely extend the fall from 149.76 through 109.20 low.
