EUR/JPY has tested the S/H/S bottom neckline at 127.09 multiple times, which often is followed by a violent break above the neckline and rush higher to the next upside target of 129.06. We still need a clear break above the neckline resistance at 127.09 to activate the bottom-formation.
Support is seen at 126.70 and then at 126.43.
R3: 128.25
R2: 127.72
R1: 127.50
Pivot: 127.09
S1: 126.70
S2: 126.43
S3: 125.92
Trading recommendation:
We are long EUR from 125.85 with our stop placed at 126.05
