EUR/JPY trading was contained in a narrow range yesterday. The low of the range was seen at 118.93, while the top came in at 119.57. WE need a clear break above 119.82 to confirm that red wave ii is complete and red wave iii higher to at least 121.92 is developing.
That said, it also means that red wave ii still could be developing and in this case, we should see more downside pressure towards support in the 118.41 - 118.66 area to complete red wave ii and set the stage for the next impulsive rally in red wave iii.
R3: 120.30
R2: 120.00
R1: 119.80
Pivot: 119.40
S1: 119.00
S2: 118.68
S3: 118.41
Trading recommendation:
We are long EUR from 118.25 with our stop placed at 117.50
