In line with our yesterday's suggested harmonic scenario, the EUR/JPY pair moved slightly downwards to relieve the momentum indicator but finally, it started to show a positive sign as seen on Stochastic. Henceforth, potential upside movements to resume the CD leg of the pattern could be seen over intraday basis.
The trading range for today is among key support at 123.60 and key resistance now at 127.85.
The general trend over short term basis is to the downside, targeting 115.00 as far as areas of 132.50 remain intact.
Support125.00124.65124.15123.60123.20Resistance125.90126.40126.75127.30127.85RecommendationBased on the charts and explanations above our opinion is, buying the pair from 125.40 targeting 127.20 and stop loss below 124.15 might be appropriate.