Wave summary:
The decline from 136.64 has been strong and the pair is already testing the support at 133.89. A clear break below here will point lower to 132.21 as the next downside target. EUR/JPY will move lower as long as it stays below 134.58, while a break above this minor resistance will indicate that a corrective rally above 135.49 is developing, before declining again.
In the longer term, we are looking for the wave (E) lower to 123.43 to develop and complete the triangle consolidation, that has been developing since July 2008.
R3: 135.49
R2: 135.02
R1: 134.56
Pivot: 133.89
S1: 133.57
S2: 133.06
S3: 132.55
Trading recommendation:
We are short on EUR from 134.75. We will take half profit at 134.09 and a nice little 67 pips profit and lower our stop to 134.60 on the other half.
