Wave summary:
EUR/JPY has tested important resistance at 131.60 again. The failure to break right through indicates a more complex wave ii correction is building in form of a flat correction. This mean a new rally to 131.15 should be expected shortly to complete wave c of ii and set the stage for the next downside pressure in wave iii.
Short-term a break above minor resistance at 132.26 will confirm the expected mini rally to 133.15.
R3: 133.15
R2: 132.84
R1: 132.26
Pivot: 131.60
S1: 131.00
S2: 130.56
S3: 130.05
Trading recommendation:
We are short EUR from 132.59 and will move our stop lower to 132.30. If our stop is hit, we will sell EUR again at 133.10.
