Elliott wave analysis of EUR/JPY for July 27, 2018

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The continued downside pressure is forcing us to change our short-term count. Instead of red wave i peaking at 129.50, we have moved that peak forward to the 131.99 peak, which means that red wave ii now is developing. The 61.8% corrective target of red wave i is seen at 128.98 and just below at 128.55 the S/H/S bottoms neckline is seen. This former resistance, now support. may act as a magnet and call for test, before bottoming and turning prices higher in red wave iii towards 135.74.

Only a direct break above minor resistance at 130.44 will indicate that red wave ii has completed and red wave iii is developing.

R3: 130.44

R2: 130.03

R1: 129.65

Pivot: 129.47

S1: 129.18

S2: 128.98

S3: 128.55

Trading recommendation:

We will buy EUR at 128.60 or upon a break above resistance at 130.44.

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