EUR/JPY dipped right to low bottom end of our corrective target-area between 128.15 - 128.42 (the low was seen at 128.15) and a clear break above minor resistance at 129.39 will now call for a continuation higher towards the next minor upside target at 130.01 and longer term higher to 135.94 and 149.50 as the next major upside targets.
Ultimately we are looking for EUR/JPY to break above the July 2008 high at 169.69.
Support is now seen near 128.86 and 128.15. Ideally the later will continue to protect the downside for a break above 130.01 towards 132.16 on the way higher to 135.94.
R3: 130.50
R2: 130.01
R1: 129.39
Pivot: 128.86
S1: 128.46
S2: 128.15
S3: 127.90
Trading recommendation:
We are long EUR from 125.85 and we will keep our stop at 126.85 for now.
