EUR/JPY continues to move higher from its possible wave (E) low at 124.59. The rally of this low, clearly has impulsive characteristics, indicating that long-term low could be in place at 124.59.
The ongoing rally is running into resistance in the 128.44 - 128.66 area, which likely will cap the upside for a deeper corrective decline in wave ii. This corrective decline will likely dip into support in the 126.31 - 126.60 area before turning back up in wave iii.
R3: 128.66
R2: 128.44
R1: 128.29
Pivot: 127.93
S1: 127.54
S2: 127.17
S3: 126.80
Trading recommendation:
We are long EUR from 126.84 and will move our stop higher to 127.90 and we will take profit at 128.45.
