EUR/JPY dipped below the 116.37 target intra day, but as we expected closed almost exactly at this target. We do think that another attempt to spike lower to 115.83 will be seen before a more solid bottom is in place and a new impulsive rally can begin. Only a clear break above minor resistance at 116.78 will indicate the bottom being in place, while a break above resistance at 117.93 will be needed to confirm that a bottom has been seen and a new impulsive rally is building.
R3: 117.93
R2: 117.15
R1: 116.78
Pivot: 116.37
S1: 116.00
S2: 115.83
S3: 115.33
Trading recommendation:
We are looking for a buying opportunity and will only buy a break above 116.78 with our stop placed at 115.78
