EUR/JPY could have bottomed with the test of 121.29 and begun a new impulsive rally to above 127.50. Nevertheless, we do not have enough evidence to confirm this. Therefore, we need to stay flexible and allow for a final dip closer to 121.00. If a break a break below 120.94 happens, it will leave us with only three waves up from the 120.74 low and by definition a corrective pattern.
A break above short-term minor resistance at 121.84 will be the first indication that a bottom is in place for renewed upside pressure.
R3: 122.24
R2: 122.13
R1: 121.84
Pivot: 121.69
S1: 121.40
S2: 121.19
S3: 120.94
Trading recommendation:
We are long EUR from 121.50 with our stop placed at 120.90.
The material has been provided by InstaForex Company - www.instaforex.com