Daily Pivots: (S1) 129.90; (P) 130.45; (R1) 130.87; More….
Intraday bias in EUR/JPY is turned neutral as it retreated after hitting 130.99. Some consolidations could be seen but further rally is expected as long as 129.59 minor support holds. As noted before, whole consolidation from 134.11 could have completed with three waves down to 127.36, ahead of 126.58 medium term fibonacci level. Above 130.99 will resume the rise from 127.26 to retest 133.44/134.11 resistance zone. On the downside, however, break of 129.59 will turn bias back to the downside for 127.36 support instead.
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.
