FX.co ★ Elliott wave analysis of EUR/JPY for January 30, 2018

Wave summary:

EUR/JPY is consolidating nicely below the pivot point at 135.00, which confirms more downside pressure shortly towards 131.11 from where another corrective rally is expected.

Looking at the larger picture, wave (D) of a huge triangle consolidation completed with the peak at 136.64 and wave (E) is now developing and for the weeks ahead the general pressure will be towards the downside for a decline towards the ideal target for wave (E) seen at 123.43.

R3: 136.15

R2: 135.84

R1: 135.48

Pivot: 135.00

S1: 134.29

S2: 133.91

S3: 133.64

Trading recommendation:

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