We still need a breakout above minor resistance at 121.84 to indicate that EUR/JPY has bottomed and a new impulsive rally in wave 3 is developing for an ultimate breakout above the 127.50 peak.
As long as minor resistance at 121.84 is able to cap the upside, we still could see a final dip closer to 121.00. Howvever, the important support at 120.94 must under no circumstance be broken, as that will leave us with a three-wave rally from 120.74 and hence a decline below here.
R3: 122.24
R2: 122.13
R1: 121.84
Pivot: 121.69
S1: 121.40
S2: 121.19
S3: 120.94
Trading recommendation:
We are long EUR from 121.50 with our stop placed at 120.90.
