Elliott wave analysis of EUR/JPY for August 16, 2017

analytics5993f5d2020d6.png

Wave summary:

The clear break above the minor resistance-line near 130.00 is not consistent, with our expectations of a deeper correction towards 125.08. The break above this minor resistance-line indicates that the X-wave already has completed the test of 128.00 and a new zig-zag rally towards 137.36 now is developing.

Support is now seen at 130.00 and again at 129.39, which should be able to protect the downside.

R3: 131.40

R2: 131.12

R1: 130.54

Pivot: 130.00

S1: 129.39

S2: 128.89

S3: 128.53

Trading recommendation:

We are short EUR from 129.70, but will take our stop for a loss of 65 pips + reverse the position to a bought position in EUR here at 130.35. The new stop will be placed at 129.35.

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