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Elliott wave analysis of EUR/JPY for May 16, 2017

analytics591a89b03bbd5.png

Wave summary:

The break directly above 124.54 invalidated the triangle option, but we doubt that this break is the start of a new impulsive rally, but rather part of an expanded flat correction which is still calling for renewed downside pressure soon to below 122.94 to complete the correction in wave B.

Short term, a break below minor support seen at 124.55 will indicate that a top is in place for renewed downside pressure towards 123.26 and 122.94.

R3: 125.56

R2: 125.18

R1: 124.96

Pivot: 124.55

S1: 124.30

S2: 123.98

S3: 123.52

Trading recommendation:

We bought EUR at 124.54 and will place stop+reverse at 124.54. Take profit + reverse will be placed at 125.25.

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