EUR/JPY is in a bottoming process which could be completed with the test of 120.75. A break above minor resistance at 121.28 and more importantly a break above resistance at 121.53 will confirm that the pair is in search for the bottom. On the other hand, we have to accept the possibility of a final dip closer to our ideal target at 120.62 as long as minor resistance at 121.28 is able to cap the upside. The downside potential from here is likely to be very limited.
R3: 122.32
R2: 121.84
R1: 121.53
Pivot: 121.28
S1: 120.75
S2: 120.62
S3: 120.32
Trading recommendation:
We are long EUR from 120.85
