EUR/JPY continued lower changing the corrective shape, we had been favoring into a deeper correction that likely will move closer to solid support near 122.37 before the next impulsive rally higher. Only a break above minor resistance at 123.26 will indicate an early completion of the correction and call for renewed upside pressure towards 124.44 and a break above here will confirm the impulsive rally is in motion.
Taking a step back, EUR/JPY can been correcting since mid-August and has more or less been moving sideways in a larger corrective pattern and if our count is correct, then we are in the early parts of a new larger impulsive rally, that should break above the former peak at 127.02.
R3: 123.95
R2: 123.57
R1: 123.26
Pivot: 123.13
S1: 122.82
S2: 122.64
S3: 122.37
Trading recommendation:
Our stop at 123.35 was hit for a nice 100 pips profit. We will re-buy EUR at 122.50 or upon a break above 123.26
