Daily Pivots: (S1) 129.12; (P) 129.30; (R1) 129.54; More….
EUR/JPY’s strong break of 129.76 resistance suggests that fall from 131.59 is merely a correction to rise from 127.36, and has completed at 128.23 already. Intraday bias is back on the upside for 131.59 resistance first. Firm break there will revive the case that consolidation pattern from 134.11 has finished at 127.36. Further rally should then be seen back to 133.44/134.11 resistance zone. On the downside, below 129.52 minor support will mix up the outlook and turn intraday bias neutral first.
In the bigger picture, price actions from 134.11 are currently seen as a consolidation pattern only. 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 bearish reversal. In this case, deeper decline would be seen to 61.8% retracement at 121.94, and possibly below.
