EUR/JPY is currently testing important resistance near 123.25 and a clear break above this resistance will confirm that the wave ii has completed with the test of 122.06 and a new impulsive rally higher to 129.35 is developing.
That said, we also need to recognize that the downtrend from 126.83 remains intact as long as important resistance at 123.25 is able to cap the upside, but only a breakout below support at 122.26 will call for a new low below 122.06.
R3: 124.15
R2: 123.60
s1: 123.25
Pivot: 123.00
S1: 122.80
S2: 122.26
S3: 122.06
Trading recommendation:
We are long EUR from 122.25 and we will move our stop to break-even at 122.25.
