FX.co ★ Elliott wave analysis of EUR/JPY for June 5, 2018

EUR/JPY is now testing resistance in the 128.54 - 128.88 area. We expect this area will cap the upside for wave i and set the stage for a corrective decline into the 126.16 - 126.65 area in wave ii.

Short-term a break below minor support at 127.95, will confirm that wave i has completed and wave ii is developing. The most common structure for a corrective second wave is the deep zig-zag, but except from the triangle all the other corrective structures can be seen too, so only time will tell us, what to expect.

R3: 129.06

R2: 128.88

R1: 128.70

Pivot: 128.17

S1: 127.95

S2: 127.47

S3: 127.10

Trading recommendation:

We took profit at 128.45 and booked a nice profit for 161 pips. We will sell a break below 128.29 and place our stop at 129.25 if done.