Daily Pivots: (S1) 119.85; (P) 120.31; (R1) 121.12; More…
EUR/JPY’s strong rebound and break of 120.54 minor resistance argues that corrective fall from 124.08 is completed already. Intraday bias is turned back to the upside for 123.30/124.08 resistance zone. Break will resume the rise from 109.20 and target 126.09 key resistance next. In case of another fall, we’d still expect strong support from 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39) to bring rebound.
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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