FX.co ★ Elliott wave analysis of EUR/JPY for January 31, 2018

Wave summary:

We continue to look for more downside pressure, but we must accept a short-term spike closer to 135.48, before the renewed pressure should take EUR/JPY lower to 134.10 on the way to 131.11 and longer term down to the ideal wave (E) target at 123.43.

Only a break above 136.30 will question this count.

R3: 136.30

R2: 135.83

R1: 135.48

Pivot: 134.71

S1: 134.10

S2: 133.90

S3: 133.63

Trading recommendation:

We are short EUR from 134.75 with stop placed at 136.50