EUR/JPY's recovery from 126.88 is still in progress and further rise could be seen. But still, we'd expect upside to be limited by 131.56 support turned resistance and bring fall resumption. Below 128.96 minor support will flip intraday bias back to the downside. Break of 126.88 will indicate that whole fall from 138.47 has resumed and should target 161.8% projection of 138.47 to 131.56 from 135.68 at 124.50 next, which is close to 124.35 key support.
In the bigger picture, the break of 129.02 is an important indication that medium term rebound from 112.10 has completed at 139.21 already and focus now turns to 124.35 support for confirmation. In such case, fall from 139.21 will be tentatively treated as resumption of the long term down trend form 169.96 and should target a new low below 112.10. This will remain the preferred view as long as 135.68 resistance holds"
