EUR/JPY needed a second corrective dip closer to our ideal target at 119.01. It did not manage to hit this target and bottomed at a low of 119.10 before moving higher again towards the next upside target at 121.93.
That said, we do see some short-term weakness and loss of upside momentum, but key-support at 119.10 should limit the downside and continue to push EUR/JPY higher. It is also important to remember that we are looking for wave three which normally is the longest of the impulsive waves and corrections tend to be sub-normal.
R3: 121.93
R2: 121.14
R1: 120.55
Pivot: 120.00
S1: 119.57
S2: 119.30
S3: 119.10
Trading recommendation:
We are long EUR from 117.25 and we will move our stop higher to 118.55.
