FX.co ★ Elliott wave analysis of EUR/JPY for February 22, 2018

Wave summary:

The expected rally in the wave x has taken a complete different path than we expected. The failure to break above the minor resistance at 133.39, and the quick descent and break below support at 131.71 show that the wave x instead has turned into a triangle, and the next zig-zag decline towards 127.52 is developing now.

The short-term resistance is now seen at 132.10, which ideally will cap the upside for a continued downside pressure through 131.59 towards 129.43 towards the next downside target at 127.52.

R3: 132.45

R2: 132.25

R1: 132.10

Pivot: 131.65

S1: 131.55

S2: 131.20

S3: 130.73

Trading recommendation:

Our stop at 132.00 was hit for a loss of 70 pips. We will sell EUR at 132.10 with stop placed at 132.85.