The downside pressure from 122.88 continues as EUR/JPY has made a new lower low at 118.70. On the other hand, we are seeing a clear loss of downside momentum which indicates a bottom should be in place soon. Short-term a break above minor resistance at 119.27 is needed to signal a bottom is in place, while a break above resistance at 119.61 is needed to confirm that wave 2 has completed and wave three to above 122.88 is developing.
R3: 119.75
R2: 119.55
R1: 119.27
Pivot: 118.98
S1: 118.70
S2: 118.55
S3: 118.35
Trading recommendation:
We are long EUR from 119.35 with a 118.35 stop.
