EUR/JPY continues to move higher and has broken clearly above resistance at 122.22 telling us that our expectation for a second corrective decline to 119.26 likely is false. The break above 122.22 and more importantly above the former peak at 122.66 indicate that wave 2 completed with the test of 120.17 and wave 3 now is unfolding.
Short-term we expect a rally to 122.93 and then a correction towards support in the 121.81 - 122.09 area before higher again to 123.84 to complete wave i of 3.
R3: 123.84
R2: 123.34
R1: 122.93
Pivot: 122.43
S1: 122.14
S2: 121.77
S3: 121.43
Trading recommendation:
Our stop at 122.55 was hit for a 80 pips loss. We will buy EUR at 122.25.
