FX.co ★ Elliott wave analysis of EUR/JPY for May 5, 2017

Wave summary:

EUR/JPY has just hit and slightly exceeded the ideal 123.21 target, this indicates a possible extension closer to 124.06 before the rally in wave A is complete. That said, it should be a matter of time before the top is in place and a corrective decline in wave B towards 120.30 and maybe even closer to 119.25 should be expected.

A break below minor support seen at 123.21 and more importantly below support at 122.56 will confirm that wave A is complete and wave B is unfolding.

R3: 124.06

R2: 123.72

R1: 123.67

Pivot: 123.21

S1: 123.00

S2: 122.56

S3: 122.31

Trading recommendation:

We are short EUR from 123.00 and will place our stop at 124.10.