EUR/JPY has seen a deep correction in wave ii. Ideally, this wave ii correction has completed with the test of 124.58 which was a bit below the low of our ideal target-area between 125.18 and 124.80. A break above minor resistance at 125.08 will confirm the completion of wave ii and the onset of wave iii that ultimately should break above the peak of a wave i at 126.43 for a continuation higher towards 129.24 and above.
The fact that wave ii has moved close to the starting point of a wave i at 124.38 offers a low-risk buying opportunity as the stop can be placed just below 124.38, while the possible return could be many times larger.
R3: 125.60
R2: 125.21
R1: 125.08
Pivot: 124.80
S1: 124.58
S2: 124.38 - Key support, must not be broken under this bullish count
S3: 124.28
Trading recommendation:
We are long EUR from 124.41 with our stop placed at 124.35
