Today's Support and Resistance Levels:
S1: 96.70 R1: 97.26
S2: 96.36 R2: 97.80
S3: 96.01 R3: 98.16
Technical Overview:
The decline from 97.33 went slightly lower to 94.92, but from that point we saw an impulsive rally to 97.80, which probably marked the first part of the wave iii higher towards at least 100.30. We have identified the rally from 94.92 to 97.80 as red wave i and are red wave ii, which will correct red wave i. The first target for red wave ii is at 96.70, where red wave will retrace 38.2% of red wave i, but the correction may be deeper and retrace from 50% to 61.8% of red wave i, which would mean a correction down to 96.36 or even 96.01.
In short term a break above 97.28 will indicate that red wave ii is over for a rally towards 99.60 and 100.30. A clear break above 100.30 will extend red wave iii towards 101.52.
Trading Recommendation:
You should be long from 95.85 with 94.95 stop. If you are not long EUR against JPY already you can buy EUR at 96.70 or upon a break above 97.28 with 94.95 stop. Upon break above 97.80 lift stop to break even at 95.85.
