EUR/JPY dipped to test the 38.2% corrective target at 121.77 which should be correction enough for wave 2 and could set the stage for a new impulsive rally in wave 3 towards 123.89 and 125.65 as the next upside targets.
A break above resistance at 122.37 will confirm wave 2 has completed and wave 3 is in motion.
R3: 122.83
R2: 122.55
R1: 122.37
Pivot: 122.00
S1: 121.77
S2: 121.47
S3: 121.16
Trading recommendation:
We bought EUR at 121.85 and we have placed our stop at 121.65.
