EUR/JPY dipped to a low of 121.29 before starting to move higher again. We could still see a dip lower to the 38.2% corrective target at 120.92 after the ongoing correction is completed near 123.23. A triangle consolidation is likely to occur and under this scenario, the low of 121.29 will not be broken again. The pair may rise to 125.77.
The RSI index 39.82 has already been broken. Wave iv is unlikely to drop.
R3: 123.23
R2: 122.86
R1: 122.50
Pivot: 120.02
S1: 121.74
S2: 121.29
S3: 121.02
Trading recommendation:
We are long EUR again from 121.85 and we have our stop placed at 121.85. We will take 50% profit at 123.10.
