EUR/JPY moved directly to the 122.70 target without taking a break first. Red wave iii/ now seems so stretched that a pause is needed. Red wave iv/ to at least 121.30 and possibly even closer to the 38.2% corrective target at 120.49 should be expected anytime now before the final rally higher towards 124.22 to complete red wave v and black wave iii. It sets the stage for a more time-consuming correction in black wave iv.

R3: 124.22

R2: 123.35

R1: 122.70

Pivot: 122.00

S1: 121.30

S2: 120.77

S3: 120.49

Trading recommendation:

We took profit on the final 25% at 122.50 for a 685 pips profit. We will re-buy EUR at 120.55.