EUR/JPY still needs to prove, that a corrective low in fact was seen with the test of 119.41 and a new impulsive rally is in motion. The rally from the 119.41 low does look promising, but we still need to see a break above minor resistance at 121.23 and more importantly a break above the key resistance at 122.12 to confirm that wave 3 higher indeed is in motion. For now this is our preferred count, but we would like to see EUR/JPY act out as this also is the case, which it really hasn't yet.
Support is seen at 120.19 and again at 119.88, which ideally should be able to protect the downside for the next spike higher.
R3: 122.12
R2: 121.58
R1: 121.23
Pivot: 120.67
S1: 120.19
S2: 119.88
S3: 119.60
Trading recommendation:
We are long EUR from 119.95 with our stop placed at 119.35
