EUR/JPY moved lower to the top of our second target area between 118.41 - 118.68. This second dip to 118.68 is more than enough to make a strong base for the next impulsive rally higher towards at least 121.94 and likely even closer to 125.40 as wave iii develops.
In the short term, a break above minor resistance at 119.24 and more importantly a break above resistance at 119.48 will confirm that red wave ii has completed and red wave iii higher towards 121.94 is developing.
R3: 120.70
R2: 120.30
R1: 120.00
Pivot: 119.48
S1: 119.02
S2: 118.68
S3: 118.41
Trading recommendation:
We are long EUR from 118.25 with our stop placed at 117.50
