Still no real progress here. EUR/JPY continues to trade sideways between 127.60 and 128.66. Our preferred count continues to call for a final decline close to 123.66 to complete wave (E) of a huge 10 year long triangle. Once wave (E) is complete we will be looking for a new long-term impulsive rally higher to near 200.00.
However, for now, we need to focus on the final leg lower to complete wave (E). A break below minor support at 128.12 will indicate a decline to 127.60 and 126.62 on the way lower to the ideal long-term target for wave (E) at 123.66.
R3: 129.10
R2: 128.90
R1: 128.66
Pivot: 128.12
S1: 127.96
S2: 127.60
S3: 127.21
Trading recommendation:
We are short EUR from 128.05 with our stop placed at 129.10