Today's Support and Resistance Levels:
S1: 100.74 R1: 101.30
S2: 100.59 R2: 101.62
S3: 100.20 R3: 102.12
Technical Overview:
We saw a decline to 99.48 yesterday which could have been the start of a larger correction, but the following rally higher does look impulsive in nature and, therefore, we must assume that red wave 5 is extending itself. This definetly changes the technical picture to a much more bullish one than intitially anticipated. With the new more bullish picture in mind, the first target we should be looking for as a possible target for blue wave iii is at 101.95, but it's more likely, that blue wave iii is an extended wave, which would call for at least 103.46.
In short-term we are now looking for a move towards 101.28 before a correction down to support at 100.74 and maybe even 100.52 before the next rally higher sets in.
Trading Recommendation:
With the much more bullish picture in mind, we will again tune our focus towards buying EUR against JPY. We will buy EUR at 100.65 with a 99.48 stop.
