Elliott wave analysis of EUR/JPY for August 31, 2018

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We have seen the expected decline from 130.87 to below the ending point of red wave (A), which is what is expected for an expanded flat correction. This means, that all requirements already has been fulfilled and by definition red wave (2) now could be complete. That said, we do expect red wave (C) to move a little lower into the 128.78 - 129.00 area to complete red wave (C) and maybe completing red wave (2) too.

Now is, when all the complex corrective combination may start to develop. However, from the 128.78 - 129.00 area a rally towards at least 129.90 should be seen and if red wave (2) has completed, a much lager rally to above 130.87 will be seen.

R3: 130.40

R2: 129.93

R1: 129.65

Pivot: 129.30

S1: 129.00

S2: 128.78

S3: 128.65

Trading recommendation:

We sold EUR at 129.68 and we will lower our stop to 130.50. We will take profit and buy EUR at 129.10.

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