The EUR/JPY pair dipped to a low of 120.75 yesterday and turned higher from there. The break above minor resistance at 121.49 is the first solid evidence, that wave ii has completed at 120.75 and wave iii to above 127.50 now is in motion. To confirm that wave ii has completed and wave iii is developing, we still need to see a break above resistance at 122.26, but the odds are now in favor of that scenario.
Only an unexpected break back below 120.75, will call for more downside pressure, but the potential downside should be limited from here.
R3: 122.326
R2: 121.75
R1: 121.64
Pivot: 121.28
S1: 120.75
S2: 120.68
S3: 120.33
Trading recommendation:
We bought EUR at 120.75 and we have placed our stop at 120.50.