EUR/JPY is carrying on with a decline. The downward pressure will stay until a break above minor resistance at 120.69 and more importantly a break above 121.28 is seen. We think the downside potential from here is very limited, but non the less it will stay until a break above 120.69 is seen.
A break above 120.69 will call for a move closer towards 121.28 and only above here will confirm that wave II finally have bottomed and wave III higher through 122.32 and 123.36 is developing.
R3: 121.28
R2: 121.07
R1: 120.69
Pivot: 120.55
S1: 120.19
S2: 120.00
S3: 119.80
Trading recommendation:
We remain long EUR from 120.85
