Daily Pivots: (S1) 126.94; (P) 127.67; (R1) 128.11; More….
EUR/JPY drops to as low as 126.87 as fall from 130.14 resumed finally. Intraday bias is back on the downside for 126.63 low first. Break will then resume the whole decline from 133.12 to 124.08/89 support zone. On the upside, break of 128.38 resistance is now needed to indicate near term bottoming. Otherwise, outlook will remain cautiously bearish even in case of recovery.
In the bigger picture, as long as 124.08 key resistance turn supported holds, larger up trend from 109.03 (2016 low) could still resume. Firm break of 137.49 structural resistance will target 141.04/149.76 resistance zone next. However, decisive break of 124.08 will argue that such rise from 109.03 has completed and turn outlook bearish. In that case, deeper fall would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90.
