EUR/JPY dipped to a low of 119.33 from where it moved higher with the clear break above minor resistance at 119.80. The break above resistance at 120.25 will confirm that red wave ii has been completed and a rally to 123.58 is developing.
In the short-term, we are looking for a test of the resistance level at 120.67 and then a minor correction to 120.05 before the next strong rally towards 123.58.
R3: 121.13
R2: 120.85
R1: 120.67
Pivot: 120.30
S1: 120.12
S2: 120.05
S3: 119.82
Trading recommendation:
We are long EUR from 117.25 and we will move our stop higher to 119.30. If you are not long EUR yet, then buy near 120.05 and use the same stop at 119.30
