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.