FX.co ★ Elliott wave analysis of EUR/JPY for May 29, 2017

Wave summary:

The corrective decline from 125.81 has now entered the 123.78 - 124.17 area to complete wave ii. That said, we will need a break above minor resistance seen at 124.66 and more importantly a break above 125.06 confirming that wave iii higher towards 134.25 is developing.

As long as minor resistance at 124.66 is able to cap the upside as long will we need to allow for a slightly deeper correction in wave ii.

R3: 125.81

R2: 125.06

R1: 124.66

Pivot: 124.22

S1: 124.17

S2: 123.78

S3: 123.34

Trading recommendation:

We are long EUR from 124.20 and will place our stop at 123.20.