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Elliott wave analysis of EUR/JPY for December 12, 2018

analytics5c10998de0945.png

The b-wave has turned into a triangle, which completed with the test of 128.98 and the final five wave decline in wave c towards 123.66 is now developing.

In the short term we are looking for minor resistance at 128.67, which we expect will cap the upside for the next decline below 128.15 for a further fall to below 127.78 as wave c unfoldes towards the long-term target near 123.66.

Only an unexpected break above 128.98 will invalidate our bearish outlook.

R3: 129.37

R2: 128.98

R1: 128.67

Pivot: 128.44

S1: 128.15

S2: 127.78

S3: 127.22

Trading recommendation:

We are short on EUR from 128.05 and we will move our stop lower to 129.05.

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