EUR/JPY has rallied nicely from the blue wave (iv) low at 121.06 and is headed for our long-term target at 123.55. In a short-term perspective, we will be looking for a minor set-back to 121.99 before the next rally towards 123.00 and the target of 123.55. That is expected to complete red wave iii and set the stage for a more pro-longed correction in red wave iv. But now, keep you attention to the upside movement after a minor corrective decline to 121.99.

R3: 123.00

R2: 122.67

R1: 122.46

Pivot: 122.30

S1: 122.26

S2: 121.99

S3: 121.85

Trading recommendation:

We are long EUR from 120.25 and we have moved our stop higher to 121.40.