EUR/JPY dipped to a low of 126.97 yesterday, which completed an expanded flat correction. The rally that followed the 126.97 low also look constructive (impulsive) calls for more upside pressure going forward. Short-term the 61.8% corrective target of the rally from 126.97 to 127.99 is seen at 127.36. This support has already been tested and the next impulsive rally towards at least the 128.51 could be seen anytime now.
Only an unexpected break below support at 126.97. will question our bullish outlook.
R3: 128.52
R2: 128.23
R1: 127.99
Pivot:127.75
S1: 127.52
S2: 127.36
S3: 126.97
Trading recommendation:
Our stop at 127.00 was hit for a 20 pip loss. We will buy EUR again at 126.40 or upon a break above 127.99. Our stop will be placed at 126.85.
