EUR/JPY Elliott Wave
For the last few days the EUR/JPY pair was trading upwards, impulsive wave (3) (coloured green) of the bigger wave (5) (coloured red) was developing. Yesterday during the Asian and European sessions we could observe strong ascending movement from 124.53 towards the 125.30 level. Therefore, during the New York session this currency continued trading in a bullish mood and the price reached a new daily high at 125.89 level. We can consider this movement as the end of the impulsive wave 1 (coloured blue) of the bigger wave (3) (coloured green). Today during the early Asian session we could observe the end of the wave 2 (coloured blue) at 124.89 level and we expect to see the price higher soon. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1 we can define the potential targets with measuring wave 1 with take profit at 127.07 (161.8% of wave 1). To reduce the risk, we can use invalidation at 124.89 level as stop loss.
Support and Resistance
(S3) 123.79 (S2) 124.17 (S1) 124.70 (PP) 125.08 (R1) 125.61 (R2) 125.99 (R3) 126.52
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 125.50 with stop loss at 124.89 and take profit at 127.07 are recommended.