FX.co ★ Elliott wave analysis of EUR/JPY for January 21, 2019

The price swing down to 118.72 completed wave (E) of the more than 10 years long triangle consolidation and we should now look for wave (C) towards 203.00

The question is whether wave ii completed already at 123.37 or a more complex correction in wave ii is unfolding and a second dip closer to 122.90 should be expected? As long as resistance at 124.85 is able to cap the upside, a second dip remains preferred. If, however resistance at 124.85 is broken, then wave iii higher to 132.12 already is developing.

R3: 127.11

R2: 126.58

R1: 125.81

Pivot: 124.85

S1: 124.20

S2: 123.37

S3: 122.90

Trading recommendation:

We will buy EUR at 123.00 or upon a clear break above 124.85