EUR/JPY has finally bottomed. After a minor pull-back to the 115.32 - 115.61 area we can see a new strong rally through resistance at 116.86 and more importantly through resistance at 117.77 for a rally back to at least 122.88 and in the longer-term all the way back to the February 2018 peak at 137.50.
The decline from February 2018 to the low at 114.37 has been a double zig-zag correction and the final decline from the beginning of 2020 has been extremely complex. Presently, we can look forward to a more clear-cut price-movements.
R3: 117.24
R2: 116.86
R1: 116.40
Pivot: 116.16
S1: 115.90
S2: 115.61
S3: 115.32
Trading recommendation:
We will buy EUR at 115.65 or upon a break above resistance at 116.86
