• EUR/JPY falling inside minor impulse wave 3
• Further losses are likely
EUR/JPY has been falling sharply in the last few trading sessions inside the minor impulse wave 3 – which is a part of the longer-term downward impulse wave (3) from the end of April. Both of these impulse waves belong to the primary downward impulse wave Ⓒ from the start of February.
The pair previously broke through the key support area lying between the support levels 129.50 and 127.70 (which have been steadily reversing the price from last August – as can be seen below).
EUR/JPY is currently trading close to the support trendline of the daily down channel from February – the breakout of which can lead to further losses toward the next support level 122.50 (low of wave 2 from June 2017).