Elliott wave analysis of EUR/JPY for January 23, 2018


Wave summary:

Despite another run close to the top at 136.31 we remain firm in our belief that this rally is corrective and a new decline below 135.00 soon will be seen, confirming our expectation for a decline close 131.11 and longer term a much deeper corrective decline towards 123.43 in wave (E) of the huge triangle consolidation, which has been unfolding since July 2008.

R3: 136.64

R2: 136.31

R1: 136.03

Pivot: 135.55

S1: 135.00

S2: 134.78

S3: 134.37

Trading recommendation:

We are short EUR from 134.75 with stop placed at 136.75

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