The channel resistance line held the first attempt and caused a minor correction to 118.95 as expected. This could be enough correction in red wave ii for a second attempt to break through the resistance line for a run towards 125.40 as red wave iii extends higher.
However, if EUR/JPY fails to break above the trend-line, resistance red wave ii will need more time to develop and could move closer to support in the 118.41 - 118.68 area before being ready to take on the resistancenline for real
R3: 120.70
R2: 120.30
R1: 120.00
Pivot: 119.51
S1: 119.27
S2: 118.95
S3: 118.68
Trading recommendation:
We are long EUR from 118.25 with our stop placed at 117.50
