FX.co ★ Elliott wave analysis of EUR/JPY for January 18, 2018

Wave summary

We see no reason to change our expectation of a resistance at 136.10 being able to cap the upside for a break below support at 135.00 for a decline to 131.11, from where a new corrective rally is expected.

Short-term a break below minor support seen at 135.42 will indicate more downside pressure, but only a break below the pivot point at 135.25 will open up the downside.

R3: 136.64

R2: 136.32

R1: 136.10

Pivot: 135.25

S1: 134.95

S2: 134.80

S3: 134.35

Trading recommendation:

We are short EUR from 134.74 with stop placed at 136.75.