Elliott wave analysis of EUR/JPY for January 9, 2019

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We continue to expect the EUR/JPY pair to move above the resistance at 124.86 for a continuation higher to 127.09 in order to complete the wave i.

In the short term, we expect that support at 124.32 - 124.09 will be able to protect the downside for the expected break above 124.86 and for more upside pressure towards 127.09. Only an unexpected break below support at 124.09 will indicate that the wave i is now complete and a corrective decline in the wave ii has begun for a decline towards 121.84 and maybe even close to the 61.8% corrective target at 121.13 before tuning higher again.

R3: 126.58

R2: 125.99

R1: 124.86

Pivot: 124.32

S1: 124.09

S2: 123.80

S3: 123.39

Trading recommendation:

We are long EUR from 122.50 and we will move our stop loss order higher to 123.75 and after a break above 124.86, we will raise the stop to 124.00.

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