Elliott wave analysis of EUR/JPY for October 11, 2018

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Of course, EUR/JPY needed one last dip to just below 129.31, and we have seen a low at 129.21. This last decline occurred amidst divergence indicating a clear loss of downside momentum. To confirm that the blue wave (2) finally has completed, we need a break above minor resistance at 130.50. Once a break above here has been seen, blue wave (3) towards 138.10 should start unfolding.

R3: 131.45

R2: 130.88

R1: 130.50

Pivot: 129.90

S1: 129.76

S2: 129.31

S3: 129.21

Trading recommendation:

Our stop was hit for a loss. We will buy a break above 130.50 and place our stop at 129.10.

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