EUR/JPY has rallied to a high of 119.39 or just above our ideal target at 119.31. This has completed wave iii/ and we should now see a correction in wave iv/. As wave ii/ was a simple deep zig-zag correction, we should expect a complex flat correction, that doesn't correct more than 38.2% of wave iii/. Then the pair may try to hit 117.84. Wave v/ may climb to at least 120.30 and possibly even closer to 121.16 where we see solid resistance.
In the short-term, a break below minor support at 118.45 will confirm that wave iii/ has peaked and wave iv/ is in motion.
R3: 120.29
R2: 119.65
R1: 119.39
Pivot: 118.80
S1: 118.45
S2: 118.20
S3: 117.84
Trading recommendation:
We took profit of 75% of our long EUR position at 119.20 enjoying a nice profit of 355 pips. We will re-buy EUR at 118.00
