We did see a break below short-term support at 128.16 for a dip to 127.74, from where EUR/JPY again found its footing for a new rally to 129.06. We are still looking for more downside pressure in wave C closer to 123.66 before wave (E) of the huge triangle finally completes and a new impulsive rally should be expected.

Short-term, we need to seen minor support at 128.20 and more importantly support at 127.74 to give away to confirm the next leg lower towards 126.62 on the way lower to 123.66.

R3: 129.52

R2: 129.23

R1: 128.74

Pivot: 128.61

S1: 128.20

S2: 127.74

S3: 127.49

Trading recommendation:

We are short EUR from 128.75 with our stop placed at 129.75.