Elliott wave analysis of EUR/JPY for February 6, 2018

Wave summary:

The strong decline from 137.50 confirms that the wave (D) finally has peaked and the wave (E) lower towards the ideal target at 123.43 now is developing.

In the short-term, we will be looking for a corrective rally to 135.31 and likely even closer to 135.73 before the next strong decline towards 131.24 starts.

R3: 135.73

R2: 135.31

R1: 134.80

Pivot: 134.20

S1: 133.96

S2: 133.62

S3: 133.01

Trading recommendation:

We sold EUR at 137.30. We will book half profit here at 134.70 for a nice quick profit 260 pips. We will sell EUR again at 135.60 and place our stop at 137.00 for the rest of our position.

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

Source:: Elliott wave analysis of EUR/JPY for February 6, 2018