With the break above minor resistance at 128.67 EUR/JPY is challenging resistance at 129.05, which it ideally will respect to complete wave e of B and set the stage for a decline towards the ideally long-term target at 123.66.
Short-term, we need a break below 128.68 and more importantly a break below support at 128.56 to confirm that wave B has completed and wave C lower is developing.
At no point can a break above resistance at 129.29 be accepted under this count. A break above 129.29 will invalidate the B-wave triangle count and call for a rally towards 130.15 and above.
R3: 129.29
R2: 129.05
R1: 128.90
Pivot: 128.81
S1: 128.68
S2: 128.50
S3: 128.15
Trading recommendation:
We are long EUR from 128.05 and will move our stop+revers to 129.35.
The material has been provided by InstaForex Company - www.instaforex.com