We never had any follow-through towards the downside yesterday, instead we saw a break above the former top at 120.12. This break above resistance at 120.12 reinstates the uptrend for a possible move towards the next targets at 121.28 and then 121.74. Short term I would like minor support at 119.79 to protect the downside for the move towards 121.28. That said the very quick decline from 120.12 to 116.63 is not in accordance with my previous count and looks more like a part of wave 3 up from 100.32, that means we still have wave 4 to look for, but first we have to concentrate on the ongoing wave 3 and trying to determine the most likely termination point, which seems to be in the 121.28 - 121.74 area.
My call for the termination of blue wave ii was correct and we should now see a very powerful move towards the upside as blue wave iii develops. The first target for blue wave iii is at 1.6267, where blue wave iii will be equal in length to blue wave i, but normally I would expect an extension in wave three, which would call for blue wave iii to rally even higher towards 1.6542. We will of cause have to wait and see how this rally unfolds. Short term I will look for support at 1.5946 to protect the downside for the next rally higher.