Elliott wave analysis of EUR/JPY for February 2, 2018

Wave summary:

Our concern that the lack of downside pressure following the break below 135.00 could lead to a final spike higher to the original (D) wave target at 137.37 has been confirmed by the break above 136.30.

In the short term a break back below support at 136.60 will indicate that the wave (D) could have completed, while a break below support at 135.93 will confirm that this is the case and the wave (E) now is developing for a decline towards 123.43.

R3: 138.65

R2: 137.93

R1: 137.37

Pivot: 136.60

S1: 136.28

S2: 135.93

S3: 135.66

Trading recommendation:

Our short position from 134.75 was stopped out at 136.50. We will sell EUR again at 137.30 or upon a break below 136.60.

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

Source:: Elliott wave analysis of EUR/JPY for February 2, 2018