The EUR/JPY pair declined to 125.31 before tuning higher in a corrective rally towards 126.75. We expected the wave iv to complete near 126.75 for the renewed downside pressure towards at least 124.89 and, ideally, lower to the long-term target at 123.66 in order to complete the wave (E) of the more than ten year long triangle consolidation.

In the short term, a break below 125.81 will indicate that the wave iv has completed and the wave v lowers towards 124.89 as the first minor target on the way towards 123.66.

R3: 127.15

R2: 126.75

R1: 126.58

Pivot: 126.21

S1: 125.81

S2: 125.48

S3: 124.89

Trading recommendation:

We are short EUR from 128.05 with our stop placed at 127.05.