After breaking below the triangle support line at 127.70, the EUR/JPY pair has declined and now it should continue to move lower towards the long-term target at 123.66. This decline should complete the wave C of (E) and the more than 10 year long triangle consolidation.
Short-term minor resistance is seen at 126.68 and important resistance is now placed at 127.69, which should cap the upside at anytime for further movement lower towards 124.89 and 123.66.
R3: 127.69
R2: 127.15
R1: 126.68
Pivot: 126.27
S1: 125.85
S2: 125.51
S3: 124.89
Trading recommendation:
We are short EUR from 128.05 and we will move our stop lower to 127.85.
The material has been provided by InstaForex Company - www.instaforex.com