Elliott wave analysis of EUR/JPY for August 21, 2018

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We still favor this really being part of an expanded flat wave iv/ correction. Under this count, EUR/JPY should continue higher towards 127.94 and from there a final spike in wave v/ should be expected to just below 124.89 to complete wave ii. That said, we have some serious consideration about the time-span of wave ii. It's now getting very close to the maximum 9 x the time-span of wave i, this does imply that we might already have seen the low of wave ii/ with the test of 124.89 and wave iii to above 131.99 is in its infancy.

As long as EUR/JPY stays below 128.48 and within the maximum time-span we will keep our present count as our preferred, but a break of any of the limits, will immediately shift our preferred count in favor of a complete wave ii and wave iii developing.

R3: 127.94

R2: 127.43

R1: 127.06

Pivot: 126.46

S1: 126.05

S2: 125.76

S3: 125.55

Trading recommendation:

We are long EUR from 126.25 and we will move our stop higher to 126.00. We will take half profit at 127.40 and wait for a new EUR-buying opportunity at 125.15.

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