The jury is still out there, whether wave ii completed with the test of 127.68 and wave iii is developing. If this is the case, then EUR/JPY must stay above the 127.68 low for a rally above 128.23 and more importantly a break above 128.51.
Or whether wave ii is going to extend lower to 126.79 before completing the flat correction in wave ii and set the stage for a new impulsive rally in wave iii. A break below 127.68 will shift the favored count to this scenario.
R3: 128.51
R2: 128.23
R1: 127.98
Pivot: 127.68
S1: 127.53
S2: 127.07
S3: 126.79
Trading recommendation:
We are long EUR from 129.50 with our stop placed at 127.60. If you are not long EUR yet then buy a break above 128.23 or more conservatively wait for a break above 128.51 and use the same stop at 127.60.
