EUR/JPY dipped to the expected corrective target at 118.40. Now it is ready to rally higher towards 122.02. A break above minor resistance at 119.36 will confirm that red wave ii is complete and red wave iii higher is developing.
Third waves tend to be the strongest wave and extend. A rally to 122.02 will make red wave iii 161.8% the length of red wave i.
Support remains at 118.40.
R3: 120.70
R2: 120.33
R1: 119.88
Pivot: 119.36
S1: 118.97
S2: 118.40
S3: 118.03
Trading recommendation:
We are long EUR from 118.95 with our stop placed at 118.30
