After a minor correction EUR/JPY should be ready to challenge the upside again. There will be a rally towards 123.55. This rally will complete red wave iii and set the stage for a more prolonged correction in red wave iv.
In a short-term perspective, a break above minor resistance at 122.02 will indicate next upside attempt to start a rally to 122.50 on the way to a higher level of 123.55.
Only an unexpected break below the support level at 121.52 will indicate a development of a more complex correction in blue wave (iv). This will also call for another dip below 121.03.
R3: 122.50
R2: 122.20
R1: 122.00
Pivot: 121.85
S1: 121.69
S2: 121.52
S3: 121.29
Trading recommendation:
We are long EUR from 120.25 with our stop placed at 121.40.
The material has been provided by InstaForex Company - www.instaforex.com