EUR/JPY failed to break clearly above the trend-line resistance near 120.00 and instead moved lower towards the 118.41 corrective target (the low has been seen at 118.43). This should be enough to complete red wave ii and set the stage for a new impulsive rally higher through 120.00 towards at least 121.97 and likely higher.
In the short-term, a break above minor resistance at 119.16 will be a strong indication that red wave ii is indeed complete and red wave iii higher is developing.
R3: 119.40
R2: 119.19
R1: 118.95
Pivot 118.81
S1: 118.69
S2: 118.55
S3: 118.41
Trading recommendation
We are long EUR from 118.25 with our stop placed at 117.50