Elliott wave analysis of EUR/JPY for January 16, 2018

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Wave summary:

We continue to regard the rally from 133.01 as corrective and is looking for a break below minor support at 135.36 and more importantly a break below support at 135.00 as confirmation that this correction has completed and a new decline 131.11 is developing.

At no point should a break above 136.64 be seen under this count.

R3: 137.37

R2: 136.64

R1: 136.32

Pivot: 135.36

S1: 135.00

S2: 134.80

S3: 134.35

Trading recommendation:

We are short EUR from 134.75 with our stop placed at 136.75. Upon a break below 135.00 we will lower our stop to 136.15.

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