EUR/JPY is facing major overhead resistance

EUR/JPY - Is facing strong overhead resistance. At the weekly chart above we can see that the long term resistance line of the ending diagonal is just above the current rate for this cross. At the same time we have seen a five wave rally from the 94.10, so we should be very close to a top for this wave 1 of one larger degree. However, longer term I expect that this resistance line will be broken and that we will see a move to much higher levels and the first major target will be 111.43.

Looking at the 4 hourly chart we have made a new high above the September 17 high at 103.84, which fulfils all requirements for the five wave rally of the 94.10 low. The ideal target for this rally will be at 104.71, which should mark wave 1 of one larger degree and from where I expect a wave 2 correction, that will be bigger than any of the correction we have seen since the 94.10 low in both time and price. So be ready for a top and relatively sizable correction soon, but first lets get the top of wave 5 in place at 104.71.