EUR/JPY turned higher from the 123.38 low, which was a bit lower than the 123.65 low we expected, but non-the-less it follows the expected path of a trinagle consolidation in wave Y/ and is now in wave D/, which should rally close to 124.75 before turning lower in the final decline in wave E/ to complete wave Y/ and 2/ and set the stage for a strong rally in wave 3/ towards at least 129.82.
Short-term support is seen at 123.94 which ideally will protect the downside for the expected rally higher towards 124.75.
R3: 124.75
R2: 124.40
R1: 124.22
Pivot: 123.94
S1: 123.75
S2: 123.60
D3: 123.44
Trading recommendation:
We bought EUR at 123.55 and we will move our stop higher to 123.30 and take 50% profit at 124.55.
