Since hitting our 125.71 target EURJPY has traded around that level and is now in a small countertrend correction. Our next symmetry targets on the upside is 132.08/52; this is where Wave (1) = (5) and also would split the entire rally from 94 right in the middle of the strongest move. (ch1) S/t, the A-B-C sell-off is corrective and has taken the form of a bull flag. A rally through flag resistance at 125.75 is needed to confirm a resumption of the uptrend. Minor resistance prior to our symmetry targets are recent pivot highs at 127 & 127.65. For today support is 124.60; a break of that level does open the door for a deeper correction but our focus is on a break of the double-top resistance level at 125.90 to usher a new rally. (ch2) Levels: Support – 124.90, 124.56, 122.90 Resistance – 125.75, 125.90, 127.71
Nomura