I would like to long "EURJPY" because the price is likely to make new high after consolidation. Technical analysis: 1) Price is moving in wave (C)-4 of flat correction (A)-(B)-(C). 2) Price displays alternation between subwaves 2 and 4. - subwave 2: sharp correction (more than 78.6% retracement of wave 1) - subwave 4: sideways correction (at least 23.6% retracement of wave 3) 3) 14-day slow stochastic oscillator shows positive correlation with the price action. - Crossing back above the oversold 20 line can be used as a buy signal. 4) Price is above the cloud. The picture is still bullish. Thicker cloud should provide great support.
Profit target and stop loss: 1) I would like to make long position within the range of 23.6%-38.2% retracement level. 2) Profit target: 50% retracement level of previous downtrend located at 125. 3) Stop loss: slightly below support level located at 118.5 (the end of wave (A)). - It also lines up with Senkou-Span B. I believe these support levels should perform well.