FX.co ★ Elliott wave analysis of EUR/JPY for May 17, 2017

Wave summary:

The b-wave of the expanded flat moved slightly higher than anticipated, but it has not changed our outlook. We are now looking for wave c below 122.94 to complete wave B. This will set the stage for the next strong rally in wave C towards 138.52.

Short term, we expect minor resistance seen at 125.10 to cap the upside for a break below minor support seen at 124.56 to confirm the expected decline to below 122.94.

R3: 125.82

R2: 125.57

R1: 125.10

Pivot: 124.76

S1: 124.56

S2: 124.34

S3: 124.13

Trading recommendation:

We took a nice little profit at 125.25 (profit 71 pips) and sold EUR at the same time, so we now are short EUR from 125.25. We will place our stop at 125.20. Take profit will be placed at 123.00.