We have had to change our count as EUR/JPY has moved beyond resistance at 121.76. The first part of the correction from 122.66 completed wave w at 120.14 as a zig-zag correction and the ongoing rally from 120.14 is regarded as an x-wave, that ideally will complete near 122.22 and should be followed by renewed downside pressure towards 120.14 on the way towards the ideal target at 119.26.
Short-term a break below support at 121.70 and more importantly a break below 121.50 will confirm that wave x has completed and wave y is in motion for the expected decline towards 119.26.
R3: 122.66
R2: 122.30
R1: 122.22
Pivot: 121.85
S1: 121.70
S2: 121.50
S3: 121.06
Trading recommendation:
We sold EUR at 121.75 and we will placed our stop at 122.55
