FED remarks of a pause in its rate hikes lifted the EUR and also lifted EUR/JPY past our pivot point at 129.00, which invalidated our bearish count. So we have been back to the drawing board to review the possible options and it looks more and more likely, that wave [E] itself is developing into a triangle. If this is the case, then we should see a rally towards 130.89 and maybe even closer to 131.89 in wave D and then a final dip in wave E to complete wave [E] of the huge triangle consolidation that has been developing since July 2008.

R3: 130.89

R2: 130.06

R1: 129.62

Pivot: 129.23

S1: 128.84

S2: 128.59

S3: 128.22

Trading recommendation:

Our stop+revers at 129.25 was hit for a small loss and we will place our new stop at 128.00