Daily Pivots: (S1) 129.97; (P) 130.76; (R1) 132.32; More….
EUR/JPY’s break of 131.59 resistance confirms resumption of whole rebound from 127.36. More importantly, the development revives the case that consolidation pattern from 134.11 has finished with three waves at 127.36. Intraday bias is back on the upside for retesting 133.44/134.11 resistance zone. Firm break there will resume larger up trend from 114.42. On the downside, below 130.62 minor support will turn intraday bias neutral and bring consolidation first, before staging another rally.
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.
