EUR/JPY has extended its wave wave v/ of i, which means wave v/ now is equal in distance to the length of wave i/ through wave iii/ added to the low of wave iv/. Once this extension completes near 129.04, we should see a strong zig-zag decline to the low of wave iv/ of one lessor degree at 126.31. This is almost the 61.8% corrective target of wave i, which comes in at 126.26.
Short-term a break below minor support at 128.44 will be the first strong indication that wave i is complete, while a break below support at 128.10 will confirm and call for wave ii closer to the 126.26 - 126.31 area.
R3: 129.49
R2: 129.30
R1: 129.04 - Strong resistance
Pivot: 128.61
S1: 128.44
S2: 128.10
S3: 127.77
Trading recommendation:
We sold EUR at 128.25 with our stop placed at 129.25. If you are not short EUR yet, then sell EUR near 129.04 or upon a break below 128.44 and use the same stop at 129.25.
