Elliott wave analysis of EUR/JPY for October 5, 2017

analytics59d5f208ee231.png

Wave summary:

EUR/JPY is being locked inside a narrow trading-range between 132.16 - 132.89, this range-trading should ultimately resolve itself towards the downside and a break below 132.16 for a continuation towards 130.37 and likely even lower and wave (E) starts to gather downside momentum.

At this point, a short-term mini spike to just above 132.89 can not be excluded, but will likely turn out to be a mini bear-trap.

R3: 133 23

R2: 133.12

R1: 132.89

Pivot: 132.45

S1: 132.16

S2: 131.70

S3: 131.13

Trading recommendation:

We are short EUR from 133.00 with stop placed at 133.55. If you are not short EUR yet, then sell near 132.89 or upon a break below 132.16 and use the same stop at 133.55.

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