EUR/JPY found support near the 61.8% corrective target at 128.98 (the low was seen at 129.09). The following break above the channel resistance-line indicates that red wave ii has completed and red wave iii now is developing. To confirm this is the case, we still need a clear break above resistance at 130.44. A clear break above here will call for a rally towards 135.74.
Support is now seen at 129.84 and again at 129.43. Ideally the later will protect the downside for a test and break above resistance at 130.44.
R3: 130.74
R2: 130.44
R1: 130.10
Pivot: 129.84
S1: 129.43
S2: 129.09
S3: 128.55
Trading recommendation:
We will buy EUR at 129.55 or upon a break above 130.28.
The material has been provided by InstaForex Company - www.instaforex.com