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Elliott wave analysis of EUR/JPY for February 21, 2017

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Wave summary:

We continue to look for upside acceleration in red wave iii toward 123.67, but first resistance at 120.65 and more importantly resistance at 121.28 needs to be overcome. Once resistance at 121.28 has been broken there should not be much in the way toward the 123.67 target.

Short-term, we will ideally see minor support at 119.90 be able to protect the downside, but only a break below support seen at 119.58 will indicate that red wave ii still is unfolding.

R3: 121.28

R2: 120.65

R1: 120.39

Pivot: 120.20

S1: 119.90

S2: 119.79

S3: 119.58

Trading recommendation:

We are long EUR from 120,00 with stop placed at 119.25. If you are not long EUR yet, then buy a break above 120.65 or above resistance seen at 121.28 and use the same stop at 119.25.

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