EUR/JPY - Weekly
It's time to look at the long-term picture as the last leg down in the wave (E) has started. Our long-term preferred count shows a huge triangle formation developing as the wave [B]. This triangle formation began way back in July 2008, when the wave [A] peaked at 169.97 and the price-action since then has narrowed into the triangle. The wave [E] began at 137.50 and will, as a minimum, reach 125.32, but could extend even lower to 123.33 before the wave [E] likely completes and is ready to start it the wave [C] journey to above 169.97.
In the short-term, we expect resistance in the 128.91 - 129.06 area will cap the upside for the renewed downside pressure towards 125.32.
R3:129.88
R2: 129.49
R1: 128.91
Pivot: 128.33
S1: 127.94
S2: 127.52
S3: 127.10
Trading recommendation:
We will sell EUR at 128.85 or upon a break below 127.94.
