EUR/JPY is currently correcting the strong spike up form the 120.02 low. Ideally support in the 120.54 - 120.69 will capture the downside for a break above minor resistance at 121.13. A break above this minor resistance, will indicate the completion of the corrective decline and the beginning of a new impulsive rally higher to at least 122.13 and ideally well beyond here confirming a long-term bottom was seen at 120.02 and a new impulsive rally is developing as wave III.
R3: 121.84
R2: 121.68
R1: 121.38
Pivot: 121.13
S1: 120.69
S2: 120.54
S3: 120.44
Trading recommendation:
We are long EUR from 120.85 with our stop placed at 120.00
