After a perfect 61.8% correction in wave ii/ EUR/JPY rallied through the ending diagonal resistance-line without any problems at all. With the break above the ending diagonal resistance-line, we now have confirmation that an important low has been seen at 114.40 and a return to the starting point of the ending diagonal at 122.86 should be expected within the coming months.
The strong rally out of support at 115.91 could indicate a minor consolidation towards 116.76 before the next strong rally higher to 118.61 on the way higher to 122.86 as the first upside target.
R3: 117.76
R2: 117.42
R1: 117.23
Pivot: 116.99
S1: 116.75
S2: 116.54
S3: 116.33
Trading recommendation:
We bought EUR at 115.65 and we will move our stop to 115.20
The material has been provided by InstaForex Company - www.instaforex.com