There is still the possibility of a short-term correction closer to 119.87 before the next impulsive rally pushes EUR/JPY higher towards the next upside target near 124.64.
In the longer term, we remain bullish as the 11-year triangle consolidation completed with the text of 115.87 on September 2. This also mean that wave [C] now is in motion. If wave [C] becomes equal in length to wave [A], a rally to 196.88 looks likely over the coming years.
R3: 122.01
R2: 121.50
R1: 121.00
Pivot: 120.64
S1: 120.25
S2: 119.87
S3: 119.10
Trading recommendation:
We are long EUR from 117.25 with our stop placed at 119.00
