EUR/JPY is currently testing support near 121.31, which ideally will be able to protect the downside for the next impulsive rally higher towards 122.12 and beyond for a move closer to the peak at 124.43. If, however, support at 121.31 gives away, a drop to 121.10 should be expected before the next push higher is seen.
Only an unexpected break below 120.57 will force us to review our bullish count.
R3: 122.12
R2: 121.71
R1: 121.56
Pivot: 121.30
S1: 121.10
S2: 120.95
S3: 120.71
Trading recommendation:
We are long on EUR from 119.95 with our stop placed at 120.71
