Elliott wave analysis of EUR/JPY for January 18, 2019

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The spike down to 118.72 completed wave (E) of the more than 10 years long triangle consolidation and we should now look for wave (C) towards 203.00

Wave ii clearly has taken over and should see us lower into the support-zone between 121.22 – 121.95 from where wave iii higher to 132.12 is expected. But for now, the focus remains lower in wave ii as long as resistance at 124.86 is able to cap the upside. If, however resistance at 124.86 fails to cap the upside, we will shift our count in favor of wave ii being complete already at 123.60 and wave iii towards 132.12 unfolding already.

R3: 126.08

R2: 125.40

R1: 124.86

Pivot: 124.20

S1: 123.98

S2: 123.73

S3: 123.37

Trading recommendation:

We will buy EUR at 122.10 or upon a break above 124.86.

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