With the direct decline to 127.11, we need to reconsider the potential downside for now. If the wave C/ had dropped to 127.06, the wave A/ and C/ would have been exactly equal in length. As EUR/JPY turned almost exactly from the equality target at 127.06, we will have to consider the wave Y and maybe even the wave (E) as complete. Therefore, we have changed our stand temporary and will be looking for a rally back up to 130.30 and maybe even closer to 131.05 before a possible new push lower in a triple zig-zag correction.
A break above the minor resistance at 128.53 will confirm that a low is in place for a rally towards at least 130.30.
R3: 129.93
R2: 129.31
R1: 128.87
Pivot: 128.35
S1: 127.94
S2: 127.68
S3: 127.11
Trading recommendation:
We will buy EUR at 127.75 or upon a break above 128.35. We will place our stop at 127.05.
