Source: Forex Analysis
EUR/JPY made a new low at 124.89 with this new low all requirements to the decline from 131.97 has been fulfilled and wave ii could be complete. If this is the case, then we should see EUR/JPY power above 127.94 and more importantly above 128.45. A break above the later will confirm that wave ii has completed and wave iii is developing towards 137.50 and above.
That said, we need to acknowledge, that an expanded flat correction in wave iv is developing. Under this count EUR/JPY now should move higher in wave c/ of iv/ towards 127.94 before turning lower in wave v/ for a dip to just below 124.89, but not below 124.59. A break below 124.59 will force a recount of the decline from 137.50.
We are long EUR from 126.25 with our stop placed at 124.50. We will take half profit at 127.40 and then wait for a new EUR-buying opportunity at 125.15.
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