EUR/JPY is now in the final stages of the sideways correction in wave iv that began on January 28. We expect this sideways correction to spike slightly above 120.42 before turning lower in wave v close to the 118.85 - 119.24 target area to complete wave 2 and set the stage for the next impulsive rally above 122.65.

In the short-term, a break below minor support at 120.03 will confirm the completion of wave iv and the onset of wave v lower to the target-area between 118.85 -119.24.

R3: 120.86

R2: 120.59

R1: 120.42

Pivot: 120.03

S1: 119.76

S2: 119.50

S3: 119.24

Trading recommendation:

We will sell EUR at 120.40 with a 121.26 stop and take-profit at 119.25