EUR/JPY – 134.77
New strategy :
The single currency has rallied and broke above previous resistance at 134.50, confirming recent upmove has resumed and we have relabeled our bullish count that, only wave v of iii ended at 134.50, followed by wave iv at 131.17, hence wave v is unfolding and may extend gain to 135.00-10, then 135.50, however, near term overbought condition should limit upside and reckon 136.00-10 would hold from here, bring retreat later.
In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Below 134.15-20 would bring pullback to 133.70-75 but reckon downside would be limited to 133.30-35 and price should stay above previous resistance at 133.01 (now support), bring another rally later.
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.