Daily Pivots: (S1) 128.27; (P) 128.54; (R1) 129.09; More….
Intraday bias in EUR/JPY stays neutral for the moment. On the upside, break of 129.09 minor resistance will argue that fall from 133.44 has completed. Intraday bias will be back to the upside for 55 day EMA (now at 129.49) and above. On the downside, break of 127.36 will resume larger pattern from 134.11 to 126.58 medium term fibonacci level. We’d look for some support from there to bring rebound.
In the bigger picture, as long as 38.2% retracement of 114.42 (2020 low) to 134.11 at 126.58 holds, up trend from 114.42 is still in favor to continue. Break of 134.11 will target long term resistance at 137.49 (2018 high). However, sustained break of 126.58 will raise the chance of medium term bearish reversal. In this case, deeper decline would be seen to 61.8% retracement at 121.94, and possibly below.
