FX.co ★ Elliott wave analysis of EUR/JPY for April 12, 2017

EUR/JPY - Monthly

EUR/JPY - Daily

EUR/JPY - 4-Hour timeframe

The break below 116.28 has forced a recount for the rally from 109.48 and even the longer-term picture. Instead of an impulsive rally from 109.48 that possibility was invalidated with the break below 116.28. Therefore we will be looking for a double zig-zag correction which is unfolding. We saw wave W completing with the test of 124.09 and wave X is currently unfolding. This ideal target for this X-wave is seen near the 61.8% corrective target of the rally from 109.48 to 124.09 which comes in at 115.10 from where the next zig-zag rally will be expected for a rally towards the 138 - 139 area.

R3: 116.88

R2: 116.69

R1: 116.40

Pivot: 116.00

S1: 115.91

S2: 115.32

S3: 115.10

Trading recommendation:

Our stop at 116.05 was hit for a loss. We will only buy EUR at 115.25 or upon a break above 117.50.