Daily Pivots: (S1) 125.39; (P) 126.08; (R1) 127.03; More….
EUR/JPY’s strong rebound and break of 126.80 indicates temporary bottoming at 125.13. Intraday bias is now turned neutral for consolidation. Stronger recovery might be see, but upside should be limited well below 128.49 support turned resistance to bring fall resumption. On the downside, break of 125.13 will target 124.61 key support next.
In the bigger picture, focus is back on 124.08 key resistance turned support. Decisive break there will argue that whole rise from 109.03 (2016 low) has completed at 137.49. Deeper decline would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90 next. Sustained break there will pave the way to 109.03 and below. Meanwhile, rebound from 124.08 will keep medium term bullishness intact for another high above 137.49.