Wave summary:
EUR/JPY spiked higher to 123.35 after the ECB announced a tapering plan starting from April 2017, where they will cut the amount to EUR 60 Billion pr. month. The knee jerk reaction pushed EUR/JPY to 123.35 a few minutes and then turned lower. We continue to look for a decline into the 118.00 - 118.38 area from where the next impulsive rally toward 124.49 will be expected.
Short-term, we will be looking for resistance in the 122.11 - 122.40 area for the next decline toward 118.38.
Trading recommendation:
Our stop at 123.00 was hit. We are looking for a new selling opportunity at 122.10. Stop will be placed at 123.40 and take profit at 118.50.
