EUR/JPY is building an increasingly bullish structure, after failing to move closer to 123.60. After peaking at 123.07 we have seen EUR/JPY dip just below 122.26 indicating another first and second wave building in red. This means red wave iii of iii will be even strong and more powerful once it takes over.
Red wave ii could move closer to the 61.8% corrective target of red wave i at 121.92 before letting red wave iii take over for the next impulsive rally towards at least 125.28.
Only an unexpected break below 121.29 will invalidate our bullish outlook.
We are long EUR from 120.75 and we will move our stop to 121.75. IF our stop is hit, we will re-buy EUR upon a break above 122.56.