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