Daily Pivots: (S1) 121.05; (P) 121.41; (R1) 121.73; More…
EUR/JPY dips mildly but stays in range of 120.54/124.08 and intraday bias remains neutral for the moment. Price actions from 124.08 are seen as a corrective move. Below 120.54 will bring deeper pull back. But downside should be contained by 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39) to bring rebound. On the upside, break of 124.08 will extend the larger rally from 109.20 to 126.09 key resistance next.
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. There is prospect of another rise towards 126.09 key resistance level before completion. But even in that case, we’d expect strong resistance between 126.09 and 141.04 to limit upside, at least on first attempt. Nonetheless, decisive break of 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39) will argue that rise from 109.20 is completed and turn outlook bearish for 61.8% retracement at 114.88 and below.
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