FX.co ★ Elliott wave analysis of EUR/JPY for February 08, 2017

Wave summary:

We could still see a stab lower to test the 38.2% corrective target seen at 119.14, but from there or upon a break above 120.71 will confirm that wave (iv) has completed and wave (v) higher towards 126.54 is ready to develop. In the short term a break below minor support at 119.60 will confirm that one more stab lower to 119.14 will be needed, while a break above minor resistance seen at 120.13 will be the first indication that wave (iv) is complete already and a test of short-term important resistance at 120.71 should be expected.

R3: 120.71

R2: 120.23

R1: 120.13

Pivot: 119.90

S1: 119.60

S2: 119.49

S3: 119.14

Trading recommendation:

We will buy EUR at 119.25 or upon a break above 120.71.