The ECB's call to end it QE at the end of 2018 hit the EUR hard and of course, EUR/JPY got hit too. We were expecting a decline soon, but not of that magnitude and not below the 128.07 as that tells us that wave ii still is in motion. With wave ii still in motion, we can see now that it has turned into an expanded flat correction. the strong decline, seen after the ECB announcement, is wave c of ii, which means wave ii likely completed in early Asian trading with the test of 127.68.

If this count is correct, then we should see a break above minor resistance at 128.17 soon and more importantly a break above resistance at 128.60 adding confidence in this count. As strong as the decline from 130.36 was, as strong can the recovery be - Action/reaction.

R3: 128.95

R2: 128.60

R1: 128.17

Pivot: 127.90

S1: 127.68

S2: 127.43

S3: 126.76

Trading recommendation:

After taking a little profit for half a position and taking a loss on the other half, we bought EUR again at 129.50 and we will place our stop at 127.60 If you are not long yet, then buy near 127.90 or upon a break above 128.17 and use the same stop at 127.60.