Yesterday, EUR/JPY tested short-term important resistance at 125.17, but failed to break above. This keeps the corrective decline alive and continues to call for a final dip into the 123.85 - 124.05 area to complete the wave ii and set the stage for a new impulsive upward rally through 126.85 towards 129.35.
Only a direct breakout above 125.17 will confirm that the corrective decline in the wave ii is completed with the test of 124.09 and the wave iii is developing.
R3: 125.58
R2: 125.18
R1: 125.00
Pivot: 124.80
S1: 124.50
S2: 124.09
S3: 123.85
Trading recommendation:
We will buy EUR at 124.05 or upon a breakout above 125.20.
