EUR/JPY found strong short-term resistance at 128.51 as expected and peaked at 128.60 for a corrective decline. Ideally, this correction will find its low near 127.45 for a new rally towards 128.60 and a firm break above here confirms that wave ii completed at 126.61 and wave iii towards 136.88 now is developing.
Short-term only a break below 126.61 will invalidate our bullish outlook.
R3: 128.60
R2: 128.29
R1: 128.03
Pivot: 127.75
S1: 127.45
S2: 127.14
S3: 126.97
Trading recommendation:
We are long EUR from 127.99 with our stop placed at 126.85. If you are not long EUR yet, then buy near 127.45 or upon a break above 128.60 and use the same stop at 126.85.
