Flag formation on EURJPY gives great risk/reward potential

The pullback yesterday was in three waves (a classic pattern for a correction) with the cross stopping between 50 and 61.8 percent. This whole move lower can been seen as a corrective flag with the bias now strongly to the upside. The risk / reward facture here is very good with the upside target at 106.20. The stop can be placed inside the flag (-103.90).

For further confirmation we can use the cloud as support.