EUR/JPY prepare to buy on major support

The price is now testing major support at 130.19 (Fibonacci retracement, Fibonacci extension, bullish divergence) and we expect to see a strong bounce above this level for a push up to 131.03 resistance (Fibonacci retracement, horizontal swing high resistance).

Stochastic (34,5,3) is seeing strong support above 7.8% and also sees bullish divergence signaling that a bounce is impending.

Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EUR/JPY, AUD/JPY, and USD/JPY.

Buy above 130.19. Stop loss is at 129.76. Take profit is at 131.03.

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