EUR/JPY seems to have found it's wave 3/ peak at 133.59 just 7 small pips from our target. It is likely to test the 133.66 for many months now. The rally happened after the break of 133.66 above the S/H/S bottom neck-line resistance in February at 127.09. At the same time wave 3/ would be 161.8% larger than wave 1/ at 133.66. So, two different ways to find the 133.66 target, and now just 7 small pips before wave 3/ is completed. We should focus on the expected correction in wave 4/.
As wave 2/ was a deep correction we should expect a smaller correction in wave 4/ by 23.6% or at the most 38.2%. Wave 2/ was a simple correction. So, we should look for a complex correction in wave 4/ This could be an expanded flat or a triangle consolidation, but either way, it will be difficult to trade.
Trading recommendation:
Ideally, you should have taken profit close to 133.66 if not then consider taking profit here and wait for a new buy-option in the support area between 129.05 - 130.82 for the next impulsive rally higher in wave 5/.
The material has been provided by InstaForex Company - www.instaforex.com