Elliott wave analysis of EUR/JPY for April 20, 2017

Wave summary:

EUR/JPY has already broken above short-term important resistance at 116.55 and also the resistance line from 122.88 confirming that an important low was seen with the test of 114.82 and a new strong rally to above 122.88 and 124.09 should be expected in the coming weeks/months.

Short term, a break below minor support seen at 116.45 will indicate a deeper correction towards the 115.65 - 115.90 area before strongly higher again. If, however minor support at 116.45 is able to protect the downside, we could see a direct rally higher to 117.99 and possibly even closer to 119.91 before a more substantial correction should be expected.

R3: 117.52

R2: 117.13

R1: 116.98

Pivot: 116.75

S1: 116.65

S2: 116.46

S3: 116.20

Trading recommendation:

We are long EUR from 115.25 with stop placed at 114.75. If you are not long EUR yet, the buy near 116.00 if possible and use the same stop. Otherwise buy a break above 116.98 and use a stop at 116.40.