by:ActionForex
Daily Pivots: (S1) 125.28; (P) 127.42; (R1) 128.68;
EUR/JPY falls further to as low as 126.07 and is now pressing mentioned 126.40 support. Intraday bias remains on the downside for the moment. Decisive break of 126.40 will confirm that whole rebound from 112.10 has completed at 137.38 already and target 121.72 cluster support (61.8% retracement of 112.10 to 137.38 at 121.75) next. Bring will bring retest of 112.10 low. On the upside, above 128.84 will turn intraday outlook neutral and bring some recovery. But break of 134.30 resistance is needed to indicate that fall from 137.38 has completed. Otherwise, short term risk remains on the downside.
In the bigger picture, note that the whole down trend from 08 high of 169.96 has either bottomed at 113.63 or 112.10. The main question now is whether subsequent multi-month consolidation has completed at 137.38 or not. Current focus will now be on 121.72 cluster support as well as the structure of fall from 137.38. In any case, strong break of 121.72 will build up the case that fall from 137.38 is resuming the medium term down trend and in such case, we'll look forward to break of 112.10 low ahead. Nevertheless, strong rebound from 121.72 will open up the case for more medium term consolidation before down trend resumption.
