EUR/JPY has recovered nicely from the corrective low of 125.83 and is currently testing short-term key resistance at 126.49. A break above this resistance will confirm the completion of the correction and the on-set of the next impulsive rally higher to 129.06 which marks the S/H/S bottom target.
Support is now seen at 126.27 and again at 125.83.
R3: 127.75
R2: 127.30
R1: 126.66
Pivot: 126.49
S1: 126.27
S2: 125.83
S3: 125.61
Trading recommendation:
We are long EUR from 123.43 with our stop placed at 125.50. Upon a break above 126.49 we will raise our stop to 125.80
