EUR/JPY is showing the first serious signs of a bottom being in place at 117.02. We have now seen a break above minor resistance at 117.63 and we will be looking for a clear break above resistance at 118.47 to confirm that wave ii has completed and a new impulsive rally in wave iii is developing. The minimum target for wave iii is seen at 121.93 but it is likely that wave iii extend beyond 121.93 for a move closer to 125.34 before the next larger correction should be expected.
For now, look for a test of short-term important resistance at 118.47 soon.
R3: 118.47
R2: 118.18
R1: 118.02
Pivot: 117.90
S1: 117.66
S2: 117.41
S3: 117.22
Trading recommendation:
We are long EUR from 117.20 and we will move our stop higher to 116.95
