EUR/JPY is now testing the lower part of our target zone between 118.85 – 119.24 and we see a clear loss of downside momentum. To indicate that a bottom could be in place, we need a break above 119.15 and more important a break above resistance at 119.90 that confirms wave iv is complete and v to above 122.88 is developing.
As long as minor resistance at 119.15 stays intact, we could see more downside pressure, but the potential downside from here should be limited.
We are long EUR from 119.35 and we have our stop placed at 118.35
The material has been provided by InstaForex Company – www.instaforex.com