EUR/JPY broke directly above short-term important resistance at 117.93 adding confidence in our preferred count, indicating a firm bottom for wave (E) at 115.86. This means a new impulsive rally should be in its infancy. Wave i likely peaked at 118.61 and we will now be looking for a correction in wave ii towards 117.24 and maybe even closer to 116.95 before turning higher again in wave iii towards 123.13.
R3: 119.70
R2: 119.00
R1: 118.61
Pivot: 118.24
S1: 117.92
S2: 117.63
S3: 117.24
Trading recommendation:
We are long 50% of our normal position from 116.80 and we will add the final 50% at 117.40.
