EUR/JPY remains locked in a minor sideways consolidation in wave ii. We are looking for a final dip to just below 120.80 to complete wave ii and set the stage for a strong rally in wave iii towards at least 122.90 and likely even closer to resistance at 123.36 before the next correction/consolidation should be expected.
Only an unexpected break below 120.02 will revive the correction in wave II, but the potential downside should remain very limited.
R3: 121.84
R2: 121.68
R1: 121.35
Pivot: 121.22
S1: 120.96
S2: 120.88
S3: 120.71
Trading recommendation:
We are long EUR from 120.85 with our stop placed at 120.00
