The EUR/JPY pair has finally broken below the triangle support-line at 127.70 and the wave C will be able to lower to the long-term ideal target at 123.66.
Now the previous support at 127.70 should act as resistance and, ideally, cap the upside for a further decline in the wave C. However, this will be only a break above resistance at 128.38 that invalidates further downside pressure and indicates a long-term low.
R3: 128.38
R2: 128.07
R1: 127.70
Pivot: 127.50
S1: 127.20
S2: 126.63
S3: 125.96
Trading recommendation:
WE are short EUR from 128.05 and we will move our stop and reverse orders lower to 128.45.