Today's support and resistance levels:
S1: 121.11 R1: 121.87
S2: 120.74 R2: 122.20
S3: 120.35 R3: 122.75
Technical overview:
EUR/JPY has been trading in a very narrow range of 121.12 - 122.18 during the last couple of days, but we know that this type of range trading normally is followed by high volatility. The big question is of course which way we are going to break out of this range. We are still looking for one last rally higher to 122.75 followed by renewed weakness down to the ideal corrective target at 117.28. However, a break below 121.12 will open for the possibility of a direct decline towards the ideal target. A break below support at 120.36 will confirm this outcome.
Trading recommendation:
We are still looking for a new EUR shorting opportunity and will sell EUR at 122.65 or upon a break below 121.12 (One order done cancels the other). Our stop will be placed at 123.95 and our take profit at 117.50.
