The resistance-line near 120.00 held again and turned EUR/JPY lower as expected. The decline from near 120.00 has been larger than expected and does increase the possibility, that red wave ii still is in motion. If, this is the case, then a decline to 118.48 should be expected before red wave iii takes over and a rally to at least 121.97 takes off.
Only a direct break above minor resistance at 119.40 will tell us, that red wave iii is unfolding and the expected impulsive rally higher already is well under way.
R3: 120.30
R2: 120.00
R1: 119.80
Pivot: 119.40
S1: 119.00
S2: 118.68
S3: 118.48
Trading recommendation:
We are long EUR from 118.25 with our stop placed at 117.50
