EUR/JPY failed to hold above short-term important resistance at 120.31. It means that the correction in red wave iv/ was still in motion and the 61.8% corrective target at 119.84 should be the target. Red wave iv/ is likely to test 119.84
and red wave v/ may rise higher to 125.77. We need a break above minor resistance at 120.53 to indicate that red wave v/ now is unfolding, while a break above resistance at 121.23 will confirm the impulsive rally in red wave v/.
R3: 121.23
R2: 120.77
R1: 120.53
Pivot: 120.29
S1: 120.00
S2: 119.80
S3: 119.61
Trading recommendation:
Our stop at 120.25 was hit for a loss, but we have re-bought EUR at 119.95 and will place our stop at 118.95 expecting to raise our stop soon.
The material has been provided by InstaForex Company - www.instaforex.com