Daily Pivots: (S1) 131.92; (P) 132.53; (R1) 133.20; More….
EUR/JPY surged to 133.13 but quickly retreated. Intraday bias is turned neutral first. But outlook is unchanged that corrective pattern from 134.11 should have completed three waves down to 127.36. Firm break of 133.44/134.11 resistance zone will resume larger up trend from 114.42. On the downside, however, break of 131.24 minor support will delay dampen this bullish case and turn bias back to the downside for 128.23 support.
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.
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