Elliott wave analysis of EUR/JPY for December 18, 2018

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EUR/JPY has declined nicely and is currently testing the B-wave triangle support-line near 127.70. We expect this support will be broken for a continuation lower to the long-term target near 123.61, which should complete the 10 year long triangle consolidation.

In the short term a clear break below the triangle support at 127.70 confirms wave C lower is evolving. The first minor target to aim for is seen at 126.61 and then 125.19 on the way lower to the long-term ideal target at 123.61.

R3: 128.91

R2: 128.56

R1: 127.96

Pivot: 127.70

S1: 127.22

S2: 126.61

S3: 126.08

Trading recommendation:

We are short on EUR from 128.05 and we will lower our stop to 128.65.

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