Elliott wave analysis of EUR/JPY for March 21, 2019

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EUR/JPY failed to break above the minor resistance at 126.75 and instead broke below support at 126.05 indicating a deeper corrective decline to 125.25 before the next impulsive rally to 126.75 and above here confirms continuation higher to 129.50 and longer term closer to the 161.8% extension target at 133.50.

Short-term minor resistance at 126.71 should be able to cap the upside for the corrective dip to 125.25 before the next rally higher. Only a direct break above 126.71 will indicate that the correction completed early and a the next impulsive rally is developing.

R3: 126.75

R2: 126.50

R1: 126.27

Pivot: 125.75

S1: 125.58

S2: 125.25

S3: 125.18

Trading recommendation:

Our stop at 125.80 was hit for a 100 pips profit. We are look for a new buying opportunity at 125.25 or upon a break above 126.27.

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

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