Elliott wave analysis of EUR/JPY for December 17, 2018

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Important resistance at 129.29 held firm and rejected the rally in the EUR/JPY pair for a strong decline. In the short-term, we see resistance at 128.70, which was expected to cap the upside for the next decline in order to test strong support at 127.70. A break below this support will complete the B-wave triangle and confirm that the lower wave C is developing towards the ideal long-term target at 123.66.

In addition to resistance at 128.70, key resistance is seen at 129.25. This resistance must cap any rally at any time or our bearish view will be invalidated.

R3: 129.62

R2: 129.25

R1: 128.70

Pivot: 128.43

S1: 127.96

S2: 127.70

S3: 127.20

Trading recommendation:

We are short EUR at 128.05 and we will move our stop+reverse lower to 129.30.

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