EUR/JPY rallied to a high of 121.92 before turning lower again. As long as this new resistance is able to cap the upside, we should expect a final dip to 119.65 to complete wave ii and set the stage for a new impulsive rally in wave iii.
Moreover, we are seeing weakening downside momentum indicating a bottom could be found soon for a turn higher in wave iii. A break above 121.92 and more importantly a break above 123.18 will confirm wave iii developing for an ultimate break above the 127.50 peak.
R3: 122.13
R2: 121.97
R1: 121.65
Pivot: 121.34
S1: 121.04
S2: 120.75
S3: 120.50
Trading recommendation:
We will buy EUR at 119.75 or upon a break above 121.97
