Today's Support and Resistance Levels:
S1: 102.19 R1: 103.02
S2: 101.67 R2: 103.46
S3: 101.25 R3: 103.77
Technical Overview:
Friday delivered a significant rally as red wave 5 extended higher. We have also seen a break above the base channel resistance line, which confirms our theory of an extension in red wave 5 and black wave 3. What can we expect from blue wave iv once we have a top in blue wave iii near 103.43? We should look for a shallow correction towards 102.59 and maybe down to 101.92. This blue wave iv correction,which will likely be a small triangle, but it could also be a simple zig-zag correction as these two possibilities will be the alternate corrections, to the expanded flat correction we saw in blue wave ii.
Once blue wave iv is in place, we should look for the final rally in blue wave v towards 104.01 and maybe even 104.95 before red wave 5 and black wave 3 is done.
Trading Recommendation:
We should still look for buying opportunities. Therefore, we will buy EUR against JPY at 102.59 with a stop at 101.14 and take profit at 103.90.
