EUR/JPY is moving nicely higher out of the 126.61 low, but we need a break above resistance at 128.51 to confirm wave iii is well underway. A break above resistance at 128.51 will call for a continuation higher to 130.35 and 133.46 as the next minor upside targets on the way higher to the 161.8% extension target at 136.88.
Short-term support is seen at 127.63 and more importantly at 127.08. The later must hold to keep the bullish outlook intact.
R3: 128.73
R2: 128.51
R1: 128.23
Pivot: 128.01
S1: 127.78
S2: 127.63
S3: 127.39
Trading recommendation:
We are long EUR from 127.20 and we will move our stop higher to 127.00. If you are not long EUR yet, then buy EUR near 127.63 and use the same stop at 127.00.
