EUR/JPY should test the 61.8% corrective target of red wave i at 121.96 from where red wave iii is expected to take over for a strong impulsive rally towards at least 125.10 and likely even higher than that. A break above minor resistance at 122.48 will confirm red wave ii has completed and red wave iii is developing.
Only an unexpected break below support at 121.29 will invalidate our bullish outlook.
R3: 123.18
R2: 122.83
R1: 122.48
Pivot: 122.39
S1: 121.96
S2: 121.74
S3: 121.29
Trading recommendation:
We are long EUR from 120.75 with our stop placed at 121.75. If our stop is triggered, we will re-buy EUR upon a break above 122.48.
