The rally of the 117.65 low is quite impulsive indicating more upside pressure after a corrective decline towards 118.40. The next rally of the 118.40 corrective low is likely to push EUR/JPY above resistance at 120.67 and closer to 122.02 before the next consolidation. This will also mean a break above important resistance at 121.38 that will confirm a long-time low being in place.
In the short-term, a dip to 118.40 should be expected as long as minor resistance at 119.36 is able to cap the upside. From 118.40 or upon a direct break above 119.36 a rally to and above 120.67 look quite likely.
R3: 120.70
R2: 120.33
R1: 119.88
Pivot: 119.36
S1: 118.71
S2: 118.40
S3: 118.03
Trading recommendation:
We are long EUR from 118.92 with our stop placed at 118.30.
