EUR/JPY has hit a low of 121.22 before turning higher again and is now testing important resistance at 122.26. We need a clear breakout above this resistance to confirm that the wave ii has completed with the test of 120.75 and the wave iii is developing above 127.50.
Minor support at 121.67 is expected to protect the downside for a clear breakout above 122.26 confirming that the wave iii is unfolding and, at the same time, triggering the S/H/S bottom.
R3: 123.75
R2: 123.43
R1; 122.80
Pivot: 122.26
S1: 121.95
S2: 121.67
S3: 121.22
Trading recommendation:
We are long EUR from 120.75 with our stop loss order placed at 120.70.
