EURJPY corrective upmove from a record low

The single currency fell sharply to 132.37 (Wednesday's low), after the violation of 135.70 (former support, now resistance), then traded side. While 135.70 holds, another attempt on the downside is still likely, however, as the decline of 139.26 peak is seen as the correction, the price will be held over the 131.47/70 support area and returns.

Therefore, we will try to trade the range and buy EUR / JPY at 132.50 or 135.30 sell for 150 points with 50 points stop. The head, breaking the previous designated 135.70 support (now resistance) will confirm the corrective decline from 139.26 is over the top and bring the continuation of the wave V 1 for another attempt at resistance later this month.

To re-cap of corrective upmove from a record low of 88.93 (October 18, 2000), and from there the wave is divided into: 1:88.93-113.72, 2:99.88 (June 1, 2001), 3:140.91 (30 May 2003), 4:124.17 (November 10, 2003) and 5 completed a record high of 169.97 (July 21, 2008). The short but sharp selloff to 112.08 is seen as ABC x ABC type correction in the B wave. following a rally of 112.08 showed impulsive structure, therefore, we labeled wave 1 re. from 139.29 selloff seen as a downswing to retrace an increase of 126.99 (18 May) and only breach of 131.47/70 support area will confirm the wave of 1 V is over and bring a wave 2 correction 129.70 and perhaps to 126.99 (May 18, 2009), however, 124.38 support should remain intact.