EUR/JPY shot away from the 50% corrective target at 119.41 indicating a possible corrective low being in place. The break above the minor resistance at 120.21 also add confidence that a possible bottom is in place now. However, we will need a break above key-resistance at 122.12 to confirm that wave 2 is completed and wave 3 higher is in motion for a ride towards 129.24 and more likely even closer to the 161.8% extension target at 135.46.
Support is now at 119.88 while key support is at 119.41. A break below the later will call for a continuation of wave 2 towards the 61.8% corrective target at 118.23.
R3: 122.12
R2: 121.80
R1: 121.23
Pivot: 120.62
S1: 120.24
S2: 119.88
S3: 119.41
Trading recommendation:
We are long on EUR from 119.95 and we will move our stop higher to 119.35.
