EUR/JPY tested important resistance at 122.26, but was repelled lower from here. This means, we can not say for sure, that wave ii completed with the test of 120.75, but we find the odds for a bottom being in place at 120.75. Therefore, we still need the final proof in the form of a clear break above 122.26.
in the short term, we will be looking for a corrective dip from 122.26 to the 121.28 - 121.33 area from where a new attack on important resistance at 122.26 is expected and a break above will confirm that wave iii higher is developing, but also activate a should/head/shoulder bottom for a strong rally higher towards at least 123.67.
R3: 122.65
R2: 122.26
R1: 121.80
Pivot: 121.60
S1: 121.40
S2: 121.28
S3: 120.95
Trading recommendation:
We're awaiting EUR from 120.75 with our stop placed at 120.70.
The material has been provided by InstaForex Company - www.instaforex.com