EUR/JPY – 132.79
Bought at 132.70, stopped at 132.20
Position: – Long at 132.70
Stop: – 132.20
New strategy :
Although the single currency fell to as low as 132.05 late last week, the subsequent rebound suggests consolidation above this level would be seen and recovery to 133.00-10 cannot be ruled out, however, as broad outlook remains consolidative, reckon upside would be limited to 133.50-60 and price should falter below resistance at 133.89, bring further choppy trading later. Only above 133.89 resistance would revive bullishness and signal the retreat from 134.38 has ended at 132.05, bring retest of this level first.
In view of this, would be prudent to stand aside in the meantime. Below said support at 132.05 would signal the fall from 134.38 is still in progress and bring test of support at 131.72 but break there is needed to signal the rebound from 131.17 has ended, bring retest of this level first.
Our latest preferred count is that wave (ii) is ABC-X-ABC which ended at 123.33 and wave (iii) is unfolding with wave iii ended at 100.77, followed by wave iv at 111.57 and wave v as well as the wave (iii) has ended at 97.04, followed by wave (iv) at 111.43 and wave (v) has ended at 94.12 which is also the end of the larger degree v, this also implied the major wave (C) has also ended there, hence major correction has commenced from there with (A) leg unfolding in its lower degree wave c which has possibly ended at 145.69. Under this count, A-B-C wave (B) has commenced with A leg ended at 136.23, wave B at 143.79 and wave C has possibly ended at 149.79.