Low volatility keeps EUR/JPY in a very narrow range, which there seem to be no escape from at this point. EUR/JPY looks toppish near 125.45 and renewed downside pressure is expected from here, but we need a break below minor support at 124.94 and more importantly below support at 124.45 to trigger the next larger move. A break below 124.45 will call for a decline to 123.65 and longer term likely lower towards 120.95, before the correction from 127.50 completes.
That said, we need to be alert to a break above 126.18, that will confirm that the correction from 127.50 already has completed and will shift the bias to up for a retest of the 127.50 peak on the way higher to 129.50 and 131.50.
R3: 126.18
R2: 125.75
R1: 125.43
Pivot: 124.94
S1: 124.45
S2: 124.17
S3: 123.65
Trading recommendation:
We are short EUR from 124.25 with our stop placed at 126.20
The material has been provided by InstaForex Company - www.instaforex.com
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