EUR/JPY has declined nicely and is currently testing the B-wave triangle support-line near 127.70. We expect this support will be broken for a continuation lower to the long-term target near 123.61, which should complete the 10 year long triangle consolidation.
In the short term a clear break below the triangle support at 127.70 confirms wave C lower is evolving. The first minor target to aim for is seen at 126.61 and then 125.19 on the way lower to the long-term ideal target at 123.61.
R3: 128.91
R2: 128.56
R1: 127.96
Pivot: 127.70
S1: 127.22
S2: 126.61
S3: 126.08
Trading recommendation:
We are short on EUR from 128.05 and we will lower our stop to 128.65.
