Elliott wave analysis of EUR/JPY for April 5, 2018

Breaking above minor resistance at 131.30 has lifted the spirit and indicates that a final spike higher to 132.82 is possible before completing wave B/ and setting the stage for a final decline in wave (E) closer to the long-term target near 123.43.

Under this short-term count, we should see a move closer to 132.12 being followed by a sideways consolidation and then the final spike closer to 132.82 to complete wave B/, but remember this is only a sideways consolidation in wave B/ before lower, so this “rally” could complete anytime and turn prices lower.

R3: 132.82

R2: 132.12

R1: 131.82

Pivot: 131.16

S1: 130.80

S2: 130.50

S3: 130.20

Trading recommendation:

We are long EUR from 130.70 and we will move our stop higher to break-even at 130.70. Take profit +reverse remains at 132.65.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Elliott wave analysis of EUR/JPY for April 5, 2018