Daily Pivots: (S1) 130.33; (P) 130.74; (R1) 131.05; More….
EUR/JPY’s strong break of 129.99 minor support indicates that recovery from 129.22 has completed at 131.36 already. Intraday bias is turned back to the downside for 128.94 first. Break will resume the corrective fall from 137.49 and target 61.8% projection of 137.49 to 128.94 from 133.47 at 128.18, and possibly further to 126.61 medium term fibonacci level. On the upside, break of 131.36 resistance is now needed to indicate near term reversal. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, for now, price actions from 137.49 are viewed as a corrective pattern only. Hence, while deeper decline would be seen, strong support is expected at 38.2% retracement of 109.03 to 137.49 at 126.61 to contain downside and bring rebound. Up trend from 109.03 (2016 low) is expected to resume afterwards. Though, sustained break of 126.61 will be an important sign of trend reversal and will turn focus to 124.08 resistance turned support.