EUR/JPY is now close to our corrective-target at 122.15 from where we expect the next impulsive rally to take place. In the short-term, we expect minor resistance at 123.66 to be able to cap the upside for the final decline into the low 122-area to complete the corrective decline in wave 2/ and set the stage for the next rally to above the former peak at 127.07.
A break above 123.66 will be the first indication that wave 2/ has been completed already, while a break above 123.98 will confirm that wave 3/ is developing.
R3: 124.30
R2: 123.98
R1: 123.66
Pivot: 123.30
S1: 122.87
S2: 122.53
S3: 122.15
Trading recommendation:
We are short EUR from 123.90 and we will lower our stop to 123.70. We will take profit at 122.25 and revers our position from sold to buy EUR. IF done we will place our stop at 121.85
