EUR/JPY fell to a low of 120.02 from where there is a shot higher. The price met our first minor resistance at 120.69 and more importantly resistance at 121.28 strongly indicating that wave II has completed and wave III higher now is developing. The next big hurdles for EUR/JPY to overcome is seen at 122.31 and then 123.36.
Short-term we expect support at 120.54 - 120.69 to protect the downside for the next push higher towards 122.31. At no point can a break below 120.02 be allowed.
R3: 121.85
R2: 121.49
R1: 121.37
Pivot: 121.20
S1: 120.85
S2: 120.69
S3: 120.54
Trading recommendation:
We are long EUR from 120.85 and we have place our stop at 120.00
