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

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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