EUR/JPY is currently in a red wave iv correction towards the corrective target at 133.43, which will be the first estimated support. It will take a break above minor resistance at 134.21 and more importantly a break above resistance at 134.73 to confirm that red wave iv is over and red wave v towards 137.40 is unfolding. In the short term, look for a test of 133.43 and maybe even lower to 132.28 as long as minor resistance at 134.21 protects the upside.
We are long EUR from 128.85 and will keep our stop at 132.75. If you are not long EUR yet, then buy a break above 134.21 with a stop 10 pips below the most recent low.
The material has been provided by InstaForex Company – www.instaforex.com