EUR/JPY has decline nicely from the corrective peak at 121.46. We continue to look for more downside pressure trough support at 120.15 for a dip closer to 119.26 which marks the 50% corrective target of wave 1 and at the same time is where wave iv of one lessor degree bottomed. A test here will be a obvious target.
Short-term resistance is seen at 121.04. This resistance will ideally be able to cap the upside for renewed downside pressure towards 120.15 on the way lower to the expected target at 119.26. Only a break above key-resistance at 121.46 will indicate a premature low has been seen and a possible new impulsive rally in wave 3 towards at least 126.97.
R3: 121.46
R2: 121.18
R1: 121.04
Pivot: 120.66
S1: 120.42
S2: 120.15
S3: 119.95
Trading recommendation:
We are short EUR from 121.20 and we will move our stop lower to 121.50. We will take profit at 119.50.
