EUR/JPY has recovered nicely from the corrective low at 118.66. We expect a continuation higher to at least 121.94 and likely even higher towards 122.97 and 124.64 as red wave iii accelerates higher.
Short-term a clear break above the former peak at 120.01 will confirm our view of more upside pressure towards 121.94 and above. That said, we should expect a minor corrective dip from near 120.01 to 119.60 before moving higher again.
R3: 120.70
R2: 120.30
R1: 120.00
Pivot: 119.60
S1: 119.20
S2: 118.92
S3: 118.66
Trading recommendation:
We are long EUR from 118.25 with our stop placed at 117.50
