EUR/JPY is currently back-testing the broken support-line near 132.83. We expect resistance near 132.98 will be able to cap the upside for renewed downside pressure towards short-term important support at 132.08 and below here, confirms that wave B has completed and wave C lower to 124.94 is developing.
The decline from 137.50 is the final zig-zag lower in a huge triangle consolidation, that has been building since July 2008. We are only missing the final decline in the wave C to complete this zig-zag and wave (E), and set the stage for a much larger rally in EUR/JPY.
R3: 133.54
R2: 132.98
R1: 132.85
Pivot: 132.53
S1: 132.07
S2: 131.75
S3: 131.35
Trading recommendation:
We will sell EUR here at 132.85 with our stop placed at 133.85.
