Daily Pivots: (S1) 122.59; (P) 122.96; (R1) 123.44; More…
A temporary low is in place at 122.48 with current recovery, and 4 hour MACD crossed above signal line. Intraday bias is turned neutral first and some recovery could be seen. Upside of recovery should be limited by 124.09/125.29 resistance zone to bring fall resumption. As noted before, rebound form 118.62 has completed at 127.50 already. On the downside, break of 122.48 will target retest of 118.62 low.
In the bigger picture, current development argues that rebound from 118.62 is merely a correction and has completed at 127.50. EUR/JPY is staying in long term falling channel from 137.49 (2018 high). Decisive break of 118.62 will confirm resumption of this medium term fall and target 109.20 low. For now, this will be the favored case as long as 125.23 resistance holds.
