Wave summary:
EUR/JPY has declined nicely from the resistance near 135.75, but we do think, that a more complex b-wave correction could be unfolding. If this is the case, then a final rally to just above 135.75 could be seen before the next real downside pressure takes place towards 131.20 and below.
That said, we also have to stress, that the final rally in the wave b does not have to move past 135.75, it could instead complete near 135.06 and start the next impulsive decline from there.
R3: 135.75
R2: 135.06
R1: 134.58
Pivot: 133.80
S1: 133.25
S2: 133.01
S3: 132.65
Trading recommendation:
We are short EUR from 136.45. We will take half profit here at 134.30 for another nice profit of 215 pips, and we will sell EUR again at 135.75. Our stop for the remaining 50% position will remain at 137.00.
