Elliott wave analysis of EUR/JPY for January 18, 2020

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EUR/JPY has pushed lower than the ideal 125.72 and is hovering just above 125.14. This leaves us with two possible scenarios. The first sees the decline from 127.50 as red wave iv and one more push higher to above 127.50 should be expected in red wave v. The second scenario sees red wave i/ completed with the test of 127.50 and ongoing decline in red wave ii/. If this is the case, we should expect a small breach below 125.14 before EUR/JPY starts to turn higher again as red wave iii/ takes over and takes us well above 127.50 towards 129.06.

R3: 126.17

R2: 125.88

R1: 125.51

Pivot: 125.30

S1: 125.14

S2: 124.95

S3: 124.67

Trading recommendation:

We bought EUR at 125.75 and we have placed our stop at 124.75

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

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