FX.co ★ Elliott wave analysis of EUR/JPY for January 26, 2018

Wave summary:

We did see another run to the 136.30 resistance level and do expect a new attack on important support near the mark of 135.00. This support still needs to be broken clearly to confirm that the wave (D) is completed at 136.63 and the wave (E) lower is developing, with the first minor target seen at 131.11.

In the longer term, a decline to 123.43 is expected to complete the huge triangle consolidation that has been developing since July 2008.

R3: 1.36.64

R2: 136.30

R1: 135.95

Pivot: 135.40

S1: 135.00

S2: 134.78

S3: 134.37

Trading recommendation:

We are short EUR from 134.75 with our stop placed at 136.75.