Today's Support and Resistance Levels:
S1: 100.34 R1: 100.90
S2: 99.71 R2: 101.28
S3: 99.52 R3: 101.62
Technical Overview:
The ideal target for black wave 3 at 100.60 have been tested (the high has been 100.62). However, looking at the price action since the test of 100.62, it looks like a short-term consolidation rather than the start of a correction to the downside, which is why we expect one last move higher to just above 100.62. We will likely see a move to the 100.70 - 100.75 area before the top is finally in place. Once the top is firmly in place, and we get a break below 100.29, we will be looking for a shallow but complex correction towards 98.45 and maybe even 97.98. This correction will set the stage for the final rally in the sequence from 94.09 towards the 101.62 - 102.15 area in black wave 5.
Trading Recommendation:
We sold EUR against JPY at 100.55 and have a protective stop at 100.90 and take profit at 98.10.
