Elliott wave analysis of EUR/JPY for April 5, 2019

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Low volatility keeps EUR/JPY in a very narrow range, which there seem to be no escape from at this point. EUR/JPY looks toppish near 125.45 and renewed downside pressure is expected from here, but we need a break below minor support at 124.94 and more importantly below support at 124.45 to trigger the next larger move. A break below 124.45 will call for a decline to 123.65 and longer term likely lower towards 120.95, before the correction from 127.50 completes.

That said, we need to be alert to a break above 126.18, that will confirm that the correction from 127.50 already has completed and will shift the bias to up for a retest of the 127.50 peak on the way higher to 129.50 and 131.50.

R3: 126.18

R2: 125.75

R1: 125.43

Pivot: 124.94

S1: 124.45

S2: 124.17

S3: 123.65

Trading recommendation:

We are short EUR from 124.25 with our stop placed at 126.20

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

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