FX.co ★ Elliott wave analysis of EUR/JPY for May 16, 2018

EUR/JPY - 4 Hourly

EUR/JPY has resumed its downtrend towards the ideal target-area between 123.33 - 125.32.

With wave iv in place at 131.27, the final decline in wave C of (E) is now developing. The next minor support is seen at 129.96 and a break below here should accelerate the decline in wave iii/ of v lower to 128.80 and likely even closer to 128.40 as the next downside targets.

The former support at 130.73 has now transformed into resistance and is expected to cap the upside.

R3: 131.13

R2: 130.98

R1: 130.73

Pivot: 130.54

S1: 130.28

S2: 129.96

S3: 129.64

Trading recommendation:

We took profit at 130.70 and booked a nice little profit of 52 pips. We sold EUR again at 130.95 and has placed our stop at 131.20.