Daily Pivots: (S1) 120.30; (P) 120.84; (R1) 121.63; More….
EUR/JPY formed a temporary low after dipping to 120.05 and intraday bias is turned neutral for consolidation first. Outlook will remain bearish as long as 122.32 resistance holds. Break of 120.05 will extend the fall from 127.50 to retest 118.62 low. Though, break of 122.32 would indicate short term bottoming and bring stronger rebound to 123.35 resistance and above.
In the bigger picture, down trend from 137.49 is still in progress with the cross staying inside long term falling channel. Break of 118.62 will extend the fall to 109.48 (2016 low). On the upside, break of 127.50 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will remain bearish in case of strong rebound.
