EUR/JPY is now trading within the expected target-area for the wave (E) between 123.08 - 125.32. This means a long-term low could be found anytime now. That said, the negative sentiment that embraces the EUR at the moment, due to the political situation in Italy, could make the short-term price-action erratic. However, the extreme negative sentiment towards EUR might also be a sign that a low could be found soon.

A break above the minor resistance at 126.44 will be the first good indication that a long-term low has been seen, while a break above the resistance at 126.83 will confirm that a bottom is in place.

R3: 126.83

R2: 126.44

R1: 125.60

Pivot: 124.97

S1: 124.59

S2: 124.00

S3: 123.62

Trading recommendation:

We are still looking for a EUR buying opportunity, but will wait for a break above 126.83 before buying.