Elliott wave analysis of EUR/JPY for June 11, 2018


We did not expect support at 128.69 to be broken. The break below this support forced us to shifted our preferred count for the rally from 124.59 to 130.26. Instead of a series of waves ones and twos, we have to switch back to this rally being a complete five wave rally as wave i and wave two was a quick sharp decline to 128.07, that corrected 38.2% of wave i. Alternately the decline from 130.26 to 128.07 could be wave a of a more complex correction in wave ii, but only time will show.

Short-term a break above minor resistance at 129.73 will call for a re-test of the 130.26 peak on the way higher to the wave iii extension-target at 137.27.

R3: 130.26

R2: 129.93

R1: 129.73

Pivot: 129.14

S1: 128.91

S2: 128.58

S3: 128.37

Trading recommendation:

Our stop at 128.60 was hit. We will re-buy EUR at 129.25 or upon a break above 129.46. Our stop will be placed at 128.50.

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