Though your car is a W124 chassis, I am sure it was still the same as my '83 TD. My filter is located under the filler cap for the hyd. fluid reservoir. It is a small cylinder type and is held in place by a spring/clip.
1994 MB E320 Coupe (199,500 mi)
1992 MB 190E 2.6 (173,000 mi)
1983 Porsche 911SC (148,000 mi)
2004 Volvo V70 2.5T (198,000 mi)
President of CT/Westchester Section