EUR/JPY: trade idea
• EUR/JPY completes irregular ABC correction ②
• Next buy targets - 136.00 and 137.50
EUR/JPY has been rising in the last three weeks – after the pair reversed up from the support zone surrounding the round support level 130.00. The support area near 130.00 was strengthened by the 38.2% Fibonacci Correction of the previous upward impulse from November of 2012 and by the lower weekly Bollinger Band (as you can see from the weekly EUR/JPY chart below). The upward reversal from this support zone completes the extended, irregular ABC correction ② from the end of 2013.
Given that the weekly Stochastic has not yet recovered from the oversold territory – there is a strong probability the pair will continue to rise further toward the next buy targets - 136.00 and 137.50.