EUR/JPY managed to spike just above 132.90 and has peaked at 132.97. Short-term, we need a break below support at 132.09 and more importantly a break below support at 131.75 to confirm that wave B has completed and wave C is developing.

We continue to expect a final decline lower towards the ideal long-term target for wave (E) to near 123.43. This will complete the 10-year long triangle consolidation.

R3: 133.39

R2: 132.97

R1: 132.68

Pivot: 132.09

S1: 131.75

S2: 131.35

S3: 130.64

Trading recommendation:

Our stop at 132.95 was hit for a 30 pips loss. We will sell a break below support at 132.09.