FX.co ★ Elliott wave analysis of EUR/JPY for February 28, 2018

Wave summary:

EUR/JPY continues to develop as expected, and a clear break below support at 130.89 will cause acceleration lower to the next downside targets seen at 128.69 and at 127.87.

The ongoing decline from 137.50 is the wave (E) of a huge triangle consolidation, that has been developing since July 2008. Once this (E) wave is complete, we should look for a major rally to well beyond 137.50.

R3: 131.52

R2: 131.32

R1: 131.18

Pivot: 130.89

S1: 130.56

S2: 130.23

S3: 129.51

Trading recommendation:

We are short EUR from 131.45 with our stop placed at 132.15.