EUR/JPY continues to follow the expected path higher towards 123.55 that ideally will mark the top of red wave iii. In the short-term, we expect blue wave (iv) to be close to completion and a new impulsive rally in blue wave (v) towards 123.08 as the underlying uptrend continues towards 123.55 and in the longer-term even higher than that.
Support is seen at 121.01 which ideally will be able to protect the downside for a break above 121.70 indicating that blue wave (iv) has completed and blue wave (v) is developing towards 123.08.
R3: 122.46
R2. 122.05
R1: 121.70
Pivot: 121.47
S1: 121.16
S2: 121.01
S3: 120.73
Trading recommendation:
We are long EUR from 120.25 with our stop placed at break-even.
The material has been provided by InstaForex Company - www.instaforex.com