Daily Pivots: (S1) 127.62; (P) 128.19; (R1) 129.08; More….
EUR/JPY is losing some downside momentum. But further decline is expected as long as 130.27 resistance holds. Decline from 133.13, as another falling leg of the corrective pattern from 134.11, should target 126.58 fibonacci level next.
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.
