EUR/JPY only climbed to118.53 before a deeper correction was seen. This correction dipped to a low of 116.96, which was a bit deeper than we expected. However, it doesn't alter our bullish count with more upside pressure towards the 161.8% extension target at 119.31. If our bullish view should remain viable, we would expect minor resistance at 117.56 to be broken soon, and more importantly we would expect a break above resistance at 118.08 to confirm the rally towards 119.31.
Only a break below minor support at 117.08 will delay the expected rally higher for a dip 116.62 before a new attempt to break through resistance at 117.56 should be expected.
R3: 118.08
R2: 117.70
R1: 117.56
Pivot: 117.20
S1: 117.08
S2: 116.62
S3: 116.17
Trading recommendation:
We are long EUR from 115.65 with our stop placed at 116.00
