EUR/JPY has responded to the test of the 50% corrective target of a rally from 115.44 to 118.53. It is now heading higher towards short-term key-resistance at 117.98. A break above this resistance will indicate a re-emergence of the underlying uptrend towards 118.53 on the way towards the 119.31 target for wave iii. At 119.31 wave iii will be 161.8% longer than wave i, which is a common taget for third waves.
Support is now seen at 117.50 and again at 116.96.
R3: 118.53
R2: 118.20
R1: 117.98
Pivot: 117.70
S1: 117.50
S2: 117.24
S3: 116.96
Trading recommendation:
We are long EUR from 115.65 with our stop placed at 116.00
The material has been provided by InstaForex Company - www.instaforex.com