EUR/JPY is correcting as expected. We are looking for a correction towards minor support at 117.24 and maybe closer to the 61.8% corrective target at 116.91 before the next impulsive rally is be expected. Only a direct break above minor resistance at 118.27 will call for a second rally to 118.61 before renewed downside pressured towards 117.24 should be expected in a more complex correction.
Once this correction is done, a new impulsive rally higher to 123.13 is still expected.
R3: 119.00
R2: 118.61
R1: 118.27
Pivot: 117.95
S1: 117.63
S2: 117.24
S3: 116.91
Trading recommendation:
We remain 50% long EUR from 116.80 and will re-buy 50% at 117.40.
