Elliott wave analysis of EUR/JPY for August 7, 2017

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Wave summary:

The correction from 131.40 has been deeper than expected, but as long as short-term important support at 129.83 is able to protect the downside, we will be looking for more upside closer to the ideal target near 133.46.

Short-term a break above minor resistance at 131.12 will confirm the next rally higher to above 131.40 for a move closer to 133.46. Only a break below 129.83 will confirm that wave C and Y already completed with the test of 131.40.

Trading recommendation:

Our stop at 130.30 was hit for a small profit. We will re-buy EUR here at 130.55 with stop placed at 129.75 and take profit at 133.20.

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