Elliott wave analysis of EUR/JPY for February 1, 2018

Wave summary:

Our preferred count shows that wave (D) completed at 136.63 just below the ideal target seen at 137.37. However, the failure to break lower and sustain the break below 135.00 does keep a window open for a final spike to the ideal target at 137.37, before the top is secured and a decline in wave (E) towards 123.43 finally can begin.

At this point only a direct break below 135.12 and more importantly a break below 134.72 will confirm the top is in place and wave (E) is developing.

R3: 137.37

R2: 136.63

R1: 136.05

Pivot: 135.37

S1: 135.12

S2: 134.72

S3: 134.10

Trading recommendation:

We are short EUR from 134.75 with stop placed at 136.50.

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

Source:: Elliott wave analysis of EUR/JPY for February 1, 2018