FX.co ★ Elliott wave analysis of EUR/JPY for May 14, 2018

EUR/JPY saw its wave iii low at 129.22 and wave iv has been unfolding as expected towards the resistance near 130.63.

We expect that EUR/JPY will see a near-term peak for renewed downside pressure towards the ideal long-term target for wave C of (E) at 124.94 where a long-term low is expected.

In the short-term, a break below minor resistance at 129.96 will confirm that the wave iv has peaked, and the wave v lower is developing.

R3: 131.67

R2: 131.14

R1: 130.78

Pivot: 130.42

S1: 129.96

S2: 129.20

S3: 128.44

Trading recommendation:

We sold EUR at 130.63 with our stop placed at 131.25