Elliott wave analysis of EUR/JPY for January 10, 2017

Wave summary:

Our preferred outlook remains that the triangle consolidation in wave (iv) is completed at 122.00 and the final impulsive rally towards 126.54 is developing. This means that support at 122.00 must hold firm and protect the downside for a break above 123.85 confirming the next part of the rally higher towards 126.54.

A break below 122.00 will indicate that the triangle is still unfolding, but the downside should be limited 121.88 before the final rally in wave (v) kicks in.

R3: 123,72

R2: 123,07

R1: 122,92

Pivot: 122,57

S1: 122,30

S2: 122,00

S3: 121,88

Trading recommendation:

We are long EUR from 123,13 with stop at 121.75. If you are not long EUR yet, then buy near 122.30 or upon a break above 123,07 and use the same stop at 121,75.

The material has been provided by InstaForex Company - www.instaforex.com

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