FX.co ★ Elliott wave analysis of EUR/JPY for May 17, 2018

EUR/JPY - 4 Hourly

EUR/JPY Accelerated nicely lower yesterday to below short-term important support at 129.96 add confidence in our preferred count, that wave iv completed with the test of 131.38 and the final decline in wave C of (E) now is developing towards the ideal target-area between 123.33 - 125.32. A dip in this area should complete the huge triangle consolidation, that has been building since July 2008.

Short-term minor resistance at 130.73 will need to cap the upside for renewed downside pressure to below 130.18 and more importantly below support at 129.78. An unexpected break above resistance at 130.73 will indicate that a more complex correction in wave iv is developing and could call for another run higher towards 131.68 before down again.

R3: 131.13

R2: 130.73 Key resistance

R1: 130.57

Pivot: 130.18

S1: 130.05

S2: 129.78

S3: 129.49

Trading recommendation:

We are short EUR from 130.95 and we will move our stop lower to 130.80. If you are not short EUR yet, then sell near 130.57 or upon a break below 130.18 and use the same stop at 130.80.