EUR/JPY completed a leading diagonal mid-December with the test of 122.66 and is currently correcting the advance from 115.83 to 122.66. The ideal corrective target is seen at 119.26 when wave 2 has corrected 50% of wave 1. This is also the low of wave iv of one lessor degree.
Short-term we are looking for a minor bounce into resistance in the 121.18 - 121.36 area from where the next downside pressure is expected towards the 119.36 target.
R3: 121.69
R2: 121.36
R1: 121.18
Pivot: 120.87
S1: 120.37
S2: 119.88
S3: 119.26
Trading recommendation:
We will sell EUR at 121.20 with a 122.20 stop and take profit at 119.50.
