Today's Support and Resistance Levels:
R3: 131.37
R2: 131.04
R1: 130.56
Current Spot: 130.12
S1. 129.88
S2: 129.65
S3: 129.24
Technical Summary:
We saw a break above resistance at 130.50, but the lack of a follow-through rally could indicate that we need one last decline to just below 129.65 before the e wave of the triangle is finally over. No matter if we need one last decline or we are going to see a direct break above resistance at 130.56 (yesterday's high). We should see a new impulsive rally soon and a break above the triangle resistance-line near 132.20 for a continuation towards 139.21 as the first major upside target. However, in the longer term we are looking for much higher levels closer to 170.00.
Trading recommendation:
Stay long in EURJPY from 130.25 with a stop at 127.85. If you are not long yet, then buy after a break above 130.56 with the same stop at 127.85.
