Daily Pivots: (S1) 120.43; (P) 121.34; (R1) 121.87;
The deeper than expected fall from 122.88 dampened out immediate bullish view. And the consolidation pattern from 124.08 is possibly extending with another falling leg. Intraday bias in EUR/JPY remains mildly on the downside for 120.01 support and below. At this point, we'd expect strong support from 118.345 (38.2% retracement of 109.20 to 124.08 at 118.39) to contain downside and bring rebound. On the upside, above 122.24 minor resistance will suggest that fall from 122.88 is merely a pull back. And intraday bias will be turned back to the upside for retesting 124.08 high.
In the bigger picture, we're holding on to the view that medium term rise from 109.20 is still in progress. Focus is on 126.09 key resistance level. Sustained break will confirm completion of the whole decline from 149.76. And rise from 109.20 is of the same degree as the fall from 149.76. In such case, further rally would be seen to 104.04 resistance and possibly above before topping. Meanwhile, rejection from 126.09, or firm break of 118.45 cluster support, will likely extend the fall from 149.76 through 109.20 low.
