EUR/JPY rallied as we expected. With the break above minor resistance at 123.77, we have seen a strong indication that wave ii has been completed and wave iii higher now is in motion. Ultimately we are looking for wave iii to break above the former peak at 127.02. On the way higher the next obstacle to overcome is seen at 125.09 and a break above here will call for a re-test of the former peak at 127.02 on the way higher to at least 128.04.

Short-term support is now seen in the 123.71 - 123.93 area.

R3: 124.78

R2: 124.53

R1: 124.35

Pivot: 124.13

S1: 123.93

S2: 123.71

S3: 123.49

Trading recommendation:

We are long EUR from 123.48 and we will raise our stop to 123.30