To our surprise, the correction from 125.00 has been larger than expected. EUR/JPY has re-tested the former support at 123.93. This support is holding up well and will likely prove to be the low of this correction. We need a break back above minor resistance at 124.18 and more importantly above resistance at 124.59 to confirm the next rally higher towards 128.44 and likely above.
A solid support is seen in the 123.86 - 123.93 area. If support at 123.49 is broken, we will have to revise our bullish outlook.
R3: 124.59
R2: 124.38
R1: 124.18
Pivot: 124.05
S1: 123.86
S2: 123.71
S3: 123.49
Trading recommendation:
Our stop at 123.90 was hit for a nice little profit and we will re-buy EUR at 123.90 or upon a break above 124.18 and place our stop at 123.45.
