Today's Support and Resistance Levels:
S1: 95.96 R1: 96.42
S2: 95.74 R2: 96.85
S3: 95.40 R3: 97.40
Technical Overview:
With the clear break above minor resistance at 95.22, confidence was added to our call for an important bottom being in place at the 94.09 low.
The yesterday rally to 96.42 has all the qualities that a third wave should have. It was an almost vertical rise, strong and dynamic. We should now be looking for wave iv, which could make it down to 95.74, if we break below 95.96. Otherwise a break above 96.42 will indicate that wave iv is already in place for the final rally in black wave i towards 96.85 and more likely 97.40, from where we should see a correction down towards the 95.36 - 95.75 area in black wave ii.
Trading Recommendation:
You should be long EUR against JPY from 94.20 or 94.85 lift stop from 94.05 to 94.60 and be ready to lift your stop to 95.65 upon a break above 96.42. Take profit should be placed at 97.30.