FX.co ★ Elliott wave analysis of EUR/JPY for April 21 - 2017

Wave summary:

Minor support at 116.45 protected the downside, which called for a direct extension higher to 117.99 (the peak of wave iii/ has been seen at 117.82). and a correction in wave iv/ is now unfolding toward 116.52 before higher again towards 119.35 to complete wave i.

It's possible to count the rally from 114.82 as a complete five-wave rally at 117.82 and if this is the case, we should still look for a slightly deeper correction, that will overlap with the top of wave i/ at 115.88 closer to 115.82 before turning higher again.

R3: 117.82

R2: 117.40

R1: 117.25

Pivot: 117.00

S1: 116.95

S2: 116.63

S3: 116.52

Trading recommendation:

We are long EUR from 115.25 with a stop placed at 114.75. If you are not long EUR yet, then buy near 116.55 and start by using the same stop expecting to move it higher soon.