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

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Wave summary:

EUR/JPY seems to have bottomed just above the ideal 127.19 target (the low has been seen at 127.52). The break above minor resistance at 128.45 was the first indication that the x wave from 131.40 has completed and wave Z towards 137.36 is developing now.

In the short term, we would like to see a firm break above 129.18 and more importantly a break above resistance at 130.40 confirming the expected rally higher to 137.36.

R3: 130.40

R2: 129.50

R1: 129.18

Pivot: 129.00

S1: 128.63

S2: 128.42

S3: 128.04

Trading recommendation:Our stop+revers at 128.50 was hit for a minor profit on our short position and a new long position. We will place our stop at 127.75.

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