By breaking back above minor resistance at 122.09 we have the first strong indication that EUR/JPY is ready to rally higher as the next impulsive rally is likely to begin. A break above resistance at 122.30 will confirm a continuation higher to and above the 123.38. In the long- term, we are waiting for EUR/JPY to ultimately break above the 127.50 peak.
Support is now see at 121.59 and only a break below here will re-open the possibility for a final dip closer to 121.00.
R3: 123.36
R2: 123.00
R1: 122.54
Pivot: 122.30
S1: 122.02
S3: 121.79
S3: 121.59
Trading recommendation:
We bought EUR at 122.10 and has placed our stop at 121.55.
