FX.co ★ Elliott wave analysis of EUR/JPY for February 23, 2017

Wave summary:

The pair failed to regain resistance at 121.33. Yesterday's break below support at 119.30 told us that an even more complex correction, than first anticipated, was unfolding.

This triple correction likely completed with yesterday's test of 118.55 and the final impulsive rally in wave (v) of 3 is now expected towards at least 124.20 and possibly higher towards 125.53 that will complete wave 3 and set the stage for a correction in wave 4.

The first good indication that wave (v) of 3 is unfolding will be a break above minor resistance seen at 120.32, while a break above resistance seen at 121.33 will confirm wave (v) is unfolding.

R3: 120.67

R2: 120.34

R1: 119.90

Pivot: 119.65

S1: 119.25

S2: 119,00

S3: 118.55

Trading recommendation:

Our stop at 119.25 was hit for a loss. We will rebuy EUR upon at 119.25 or upon a break above 120.34 with stop placed at 118.50.