Elliott wave analysis of EUR/JPY for May 22, 2017

Wave summary:

The correction in wave B is likely not complete yet and we are looking for one more spike to a new low closer to 122.10 to complete wave B. If this count is correct, then minor resistance at 124.94 ideally should be able to cap the upside for a break below minor support seen at 124.09 and more importantly a break below support at 123.34 confirming the expected decline to 122.10.

If, however the minor resistance at 124.94 is broken, that will shift the count in favor of wave B already having completed with the test of 122.53 and wave C higher towards 138.52 already developing.

R3: 127.33

R2: 125.82

R1: 124.94

Pivot: 124.75

S1: 124.48

S2: 124.09

S3: 123.34

Trading recommendation:

We are short EUR from 124.00 with stop placed at 125.00. Take profit will be placed at 122.25.

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

Source:: Elliott wave analysis of EUR/JPY for May 22, 2017