EUR/JPY failed to break the above short-term important resistance at 121.82. Despite that fact, we continue to believe that a bottom already has been seen at 120.23 and a new impulsive rally will be seen soon. The next resistance level at 121.82 may be tested. The pair is likely to break through this level easily and moves higher to 122.50 and 123.49 as the next minor upside targets on the way higher to 125.76.
A short-term break above minor resistance at 120.96 will indicate that the next impulsive rally is in motion and that a new test of resistance at 121.82 should be expected soon.
R3: 121.82
R2: 121.43
R1: 121.08
Pivot: 120.96
S1: 120.56
S2: 120.23
S3: 119.84
Trading recommendation:
We bought EUR at 120.90 and we have placed our stop at 118.90 expecting to move it higher soon.
