EUR/JPY continues to follow the expected path higher towards the 161.8% extension target for wave iii seen at 133.54. Once the ongoing consolidation is complete and a break above minor resistance at 126.30 is seen, we expect EUR/JPY to start rally more rapidly for towards 129.37 on the way higher to the ideal 133.54 target for wave iii.
Only an unexpected break below support at 125.32 will question our bullish outlook and delay the expected rally higher.
R3: 127.65
R2: 127.03
R1: 126.30
Pivot: 125.71
S1: 125.32
S2: 124.74
S3: 124.15
Trading recommendation:
We are long EUR from 124.65 with our stop placed at 125.25
