EUR/JPY has continued lower and is now testing the equality target, where wave Y is equal in length to wave W. This target is seen at 116.37. We could see EUR/JPY try to spike lower, but ideally EUR/JPY will close above this target on a daily basis and start moving higher and a break above 117.93 will be a strong indication that a long-term bottom finally is in place and a new impulsive rally can begin,
However, for now the main trend remains down and we need to see signs of a possible bottom developing.
R3: 117.93
R2: 117.15
R1: 116.81
Pivot: 116.37
S1: 116.00
S2: 115.74
S3: 115.33
Trading recommendation:
We are looking for a buy opportunity, but will only buy a break above 117.93.
The material has been provided by InstaForex Company - www.instaforex.com