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Elliott wave analysis of EUR/JPY for December 22, 2017

analytics5a3c8b701d5c6.png

Wave summary:

With the break above 134.50, more upside pressure towards the "old" (D)-wave target at 137.37 is expected. That said, we have to remember that we are in the final stages of this (D)-wave rally from 109.54, so don't fall in love with the EUR at these lofty levels.

Support is seen at 133.84 (has been tested) and again at 133.57, which should protect the downside for the next rally higher. Below 133.57 will be of concern and indicate a possible bull-trap above 134.50.

R3: 136.05

R2: 135.75

R1: 134.90

Pivot: 134.40

S1: 133.84

S2: 133.57

S3: 133.24

Trading recommendation:

We bought EUR at 134.10 with stop placed at 133.40.

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