FX.co ★ Elliott wave analysis of EUR/JPY for May 31, 2018

EUR/JPY likely saw the low of wave C and (E) at 124.59 well within the 123.08 - 125.32 range. The following break above minor resistance at 126.44 and more importantly the break above resistance at 126.83 supports that wave (E) likely is complete and a new long-term rally is ready to develop.

The first target to look for is seen at 128.05 and maybe even closer to 128.54 where we expect the first minor impulsive rally to complete.

Short-term a minor setback to 126.21 could be seen before higher to 128.05 and possibly even closer to 128.54.

R3: 128.05

R2: 127.70

R1: 127.31

Pivot: 126.73

S1: 126.44

S2: 126.21

S3: 125.85

Trading recommendation:

We bought EUR at 126.84 and has placed our stop at 125.50. We will take half profit at 128.00.