The single currency surged again this week and broke above 120.00 level, adding credence to our view that another leg of upmove from 109.49 is underway and further gain to 120.25-30, then towards 120.90-95 (50% Fibonacci retracement of 132.33-109.49), however, overbought condition should prevent sharp move beyond 121.40-50 and price should falter below previous chart resistance at 122.02.
On the downside, whilst the retreat from 120.16 may bring initial pullback to 119.00, reckon 118.50 would limit downside and the Tenkan-Sen (now at 118.12) may attract renewed buying interest, bring another upmove later. Below 117.70-75 would defer and risk correction to previous resistance at 117.49 and later towards the Kijun-Sen (now at 116.39) but still reckon support at 116.25 would limit downside.
Recommendation: Buy at 118.15 for 120.15 with stop below 117.15.