EUR/JPY - Monthly
EUR/JPY - Daily
EUR/JPY - 4-Hour timeframe
The break below 116.28 has forced a recount for the rally from 109.48 and even the longer-term picture. Instead of an impulsive rally from 109.48 that possibility was invalidated with the break below 116.28. Therefore we will be looking for a double zig-zag correction which is unfolding. We saw wave W completing with the test of 124.09 and wave X is currently unfolding. This ideal target for this X-wave is seen near the 61.8% corrective target of the rally from 109.48 to 124.09 which comes in at 115.10 from where the next zig-zag rally will be expected for a rally towards the 138 - 139 area.
R3: 116.88
R2: 116.69
R1: 116.40
Pivot: 116.00
S1: 115.91
S2: 115.32
S3: 115.10
Trading recommendation:
Our stop at 116.05 was hit for a loss. We will only buy EUR at 115.25 or upon a break above 117.50.
The material has been provided by InstaForex Company - www.instaforex.com