Elliott wave analysis of EUR/JPY for September 6, 2018

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Whilst holding support at 128.60, we should see EUR/JPY continue higher towards 130.87 and 131.99 as the next minor targets on the way higher to 137.50.

If support at 128.60 unexpectedly gives away, that will extend the corrective decline in red wave (2) from 130.28 for a dip towards 127.60 before moving higher in red wave (3). This option is not our preferred outlook, but at this time, it's an option that we can not lay to rest yet.

R3: 130.87

R2: 130.22

R1: 129.85

Pivot: 129.50

S1: 129.14

S2: 128.91

S3: 128.55

Trading recommendation:

We are long EUR from 129.10 and we will move our stop higher to 128.50. If you are not long EUR yet, then buy near 129.14 and use the same stop at 128.50.

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