FX.co ★ Elliott wave analysis of EUR/JPY for May 15, 2018

EUR/JPY - 4 Hourly

The corrective rally from 129.20 extended to test the 50% corrective target at 131.27 (the high was seen at 131.37). The following decline does look constructive, but it is not yet in five waves. To confirm a five wave decline, EUR/JPY need to stay below minor resistance at 131.13 and break below minor support at 130.73 for a decline closer to support at 130.61. This should complete the first impulsive decline from 131.27 and confirm that the correction in wave iv is completed and wave v lower is developing.

If minor resistance at 131.13 is broken, without a new low being seen first, that will indicate that the wave iv still has more upside to cover and will target resistance at 131.76.

R3: 131.76

R2: 131.37

R1: 131.00

Pivot: 130.85

S1: 130.73

S2: 130.61

S3: 130.43

Trading recommendation:

Our stop at 131.25 was hit for a small loss of 62 pips. We will sell EUR here at 130.96 and place our stop at 131.22. We will take profit at 130.70 and be ready to re-sell EUR near 131.00.