Elliott wave analysis of EUR/JPY for February 9, 2018

Wave summary:

Corrections take a turn early or keep moving deeper/higher than initially expected. This is exactly, what we expect the EUR/JPY pair to do. Instead of turning higher from the support at 133.96, EUR/JPY continued lower to the next support at 133.01 in the wave b/ of an expanded flat b-wave correction. This means that the wave c/ of b is still missing and should start moving higher anytime now for a rally to 136.15 before tuning strong lower in the wave c below to 133.01 with the next downside target at 131.20.

R3: 134.80

R2: 134.30

R1: 133.74

Pivot: 133.35

S1: 133.01

S2: 132.65

S3: 132.00

Trading recommendation:

We will take profit on the final 50% short-position from 136.45 here at 133.50 for a nice 295 pips profit. We will buy 50% of our normal position here at 133.50 with at spot placed at 132.85 and place our take profit and revers to a short position at 136.00.

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

Source:: Elliott wave analysis of EUR/JPY for February 9, 2018