Daily Pivots: (S1) 129.38; (P) 129.69; (R1) 129.97; More….
Intraday bias in EUR/JPY remains mildly on the downside at this point. Rebound from 127.36 could have completed at 131.59 already. Deeper fall would be seen back to 127.36 first. Break there will extend the corrective pattern from 134.11 to 126.58 fibonacci level. On the upside, though, break of 131.59 will resume the rebound to 133.44/134.11 resistance zone.
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.
