EUR/JPY continues to consolidate within the range from 127.74 to 129.23. We continue to favor a break below support at 127.74 for a continuation lower to 123.66 to complete wave (E) of the huge triangle formation, that has been building since July 2008.
Only an unexpected break above resistance at 129.23 will be cause of concern, while a break above resistance at 130.13 will confirm that wave (E) already completed with the test of 124.59 and a new impulsive rally is building.
R3: 130.13
R2: 129.23
R1: 129.06
Pivot: 128.90
S1: 128.40
S2: 128.00
S3: 127.74
Trading recommendation:
We are short EUR from 128.75 with our stop+revers placed at 129.50.
