Elliott wave analysis of EUR/JPY for October 12, 2017

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Wave summary:

With a little detour to 132.45 wave C moved higher and has now spiked the 133.25 target. We continue to view the entire consolidation since the low of wave A at 131.70 as a corrective B-wave. Corrective B-waves are the most difficult to decipher and trade, because of the multiple different paths they can take, but that does not change our view, that a C-wave decline lower to 130.73 still is needed.

We are looking for a top in wave B between 133.60 - 133.75 for the expected decline in wave C.

R3: 134.24

R2: 133.75

R1: 133.60

Pivot: 133.22

S1: 133.05

S2: 132.45

S3: 131.81

Trading recommendation:

Our sell-order at 132.65 was hit before the rally higher, so we are short EUR from 132.65 with stop placed at 134.45. If you are not short-EUR yet, then sell near 133.60 and use the same stop at 134.40.

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