Elliott wave analysis of EUR/JPY for August 9, 2018

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EUR/JPY stopped cold at 129.46, just below important short-term resistance at 129.62. The failure to break above resistance at 129.62 keeps the two possible scenarios alive.

We are still slightly in favor of wave ii/ having completed at 128.48 and wave iii/ ready to develop anytime now. If this scenario is to remain our top-count, we need to see support at 128.48 protect the downside for a break above minor resistance at 128.95 and more importantly a break above the resistance-zone between 129.46 - 129.62 confirming, that wave iii/ higher towards resistance in the 135.74 - 135.79 area.

A break below 128.48, will shift the preferred count to the alternate count. This count calls for more downside pressure to 126.00 as a large expanded flat correction is developing as wave ii.

R3: 129.46

R2: 129.13

R1: 128.95

Pivot: 128.82

S1: 128.65

S2: 128.48

S3: 128.03

Trading recommendation:

We are long EUR from 128.72 with our stop placed at 128.45.

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