EUR/JPY held above short-term important support at 124.15 indicating that wave iii is developing. That said, we still need a break above resistance at 125.46 to confirm this actually is the case. A break above resistance at 125.46 will call for a continuation higher to 125.95 and 129.48 on the way higher to 133.54.
Only a break below 124.15 will delay the expected rally in wave iii and indicate wave ii still is in motion for a decline to or just below 123.40 before completing wave ii and setting the stage for wave iii higher.
R3: 125.93
R2: 125.46
R1: 125.09
Pivot: 124.85
S1: 124.63
S2: 124.43
S3: 124.15
Trading recommendation:
We are long EUR from 124.65 with our stop placed at 124.15
