EUR/JPY dipped exactly to our target at 128.29 before turning higher again. The dip to 128.29 should ideally complete red wave iv/ and set the stage for a new impulsive rally in red wave v/ towards 131.27 and possibly even closer to 133.12 to complete red wave v/ and red wave iii.
Short-term we would like to see a break above resistance at 128.77 and more importantly a break above 129.40 to confirm that red wave iv/ is complete and that red wave v/ is in motion.
R3: 129.40
R2: 129.10
R1: 128.77
Pivot: 128.72
S1: 128.48
S2: 128.29
S3: 128.18
Trading recommendation:
We bought EUR at 128.40 and we have placed our stop at 128.25
