Wave summary:
EUR/JPY took out support at 122.53 for a dip to 122.37. This minor break below 122.53 was enough to change the corrective pattern unfolding from 125.82. Instead of a triangle consolidation, the corrective pattern has turned into a flat correction with wave B complete with the test of 122.37 and wave C higher towards at least 133.34 now developing.
Short-term, we will likely see resistance near 124.05 holding for a minor set-back to 123.00 before strongly higher.
R3: 124.71
R2: 124.40
R1: 124.05
Pivot: 123.75
S1: 123.50
S2: 123.19
S3: 123.00
Trading recommendation:
Our stop at 122.45 was hit for a loss of 50 pips. We will buy EUR again at 123.25 or upon a break above 124.50.
