EUR/JPY moved directly to the 122.70 target without taking a break first. Red wave iii/ now seems so stretched that a pause is needed. Red wave iv/ to at least 121.30 and possibly even closer to the 38.2% corrective target at 120.49 should be expected anytime now before the final rally higher towards 124.22 to complete red wave v and black wave iii. It sets the stage for a more time-consuming correction in black wave iv.
R3: 124.22
R2: 123.35
R1: 122.70
Pivot: 122.00
S1: 121.30
S2: 120.77
S3: 120.49
Trading recommendation:
We took profit on the final 25% at 122.50 for a 685 pips profit. We will re-buy EUR at 120.55.
