EUR/JPY has followed the expected path lower and has now tested the 131.47 target. This likely complete wave i of C. We now expect a corrective rally closer to the peak of sub-wave iv/ at 132.55 in wave ii, before turning lower again in wave iii towards at least 129.94.

Only a direct break below support at 131.47 will extend the decline in wave i closer to 130.92.

R3: 133.01

R2: 132.54

R1: 132.18

Pivot: 131.54

S1: 13131.35

S2: 130.92

S3: 130.51

Trading recommendation:

We took half profit at 131.55 for a nice profit of 130 pips. We will close the rest of our position here at 131.75 and book 110 pips. A new EUR-sell order will be placed at 132.40.