USD/JPY outlook positive as long as we bounce 5 pips above the buying opportunity at 109.70/60.
EUR/JPY over ran 122.15/25 by 11 pips before targeting support at 121.85/75. Longs here worked perfectly on the bounce to 121.96 as we look for 122.15/25 today for profit-taking.
USD/JPY bulls remain in control on the bounce from 5 pips above 109.60/70 and back to 110.09. Further gains are expected to retest 110.20/28. A break higher meets important 15-month trend line resistance at 110.40/45 this week. Watch for a high for the day. Bulls need a sustained break above 110.55 for the next buy signal.
Downside is expected to be limited with support at 110.00/109.95 and 109.70/60. Try longs with stops below 109.50. A break lower meets strong support at 109.30/25. This is the last line of defense for bulls. Longs need stops below 109.15. A break lower is a sell signal.
EUR/JPY holding below 122.00 risks a retest of support at 121.85/75. A break below 121.65 is the next sell signal targeting 121.50 and minor support at 121.25/15.
Quite strong resistance at 122.15/25 but above 122.35 targets 122.45/50 before a retest of the 5-month recovery high of 122.82/86. Further gains target quite strong resistance at 123.00/10. A break higher targets 123.40/50.