EUR/JPY tested short-term important support at 118.27 but failed to break below to confirm wave c of ii lower towards 117.24. We continue to look for for more downside pressure through this short-term support at 118.27 confirming more downside pressure in wave c of ii.

That said, we also need to stress, that what we are looking for, is a short-term decline, before the next impulsive rally higher towards 123.13 and above.

R3: 119.88

R2: 119.59

R1: 119.29

Pivot: 118.75

S1: 118.51

S2: 118.28

S3: 117.91

Trading recommendation:

We are looking for a buying opportunity near 117.40