Elliott wave analysis of EUR/JPY for October 15, 2018

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Short-term important resistance at 130.51 rejected Friday's attempt to break above this pivot point. The clear loss of downside momentum (positive divergence on the RSI) calls for a corrective low and a new impulsive rally soon. The only question is whether a final dip to 129.00 is needed or not? We do not think it's necessary and will be looking for a break above minor resistance at 129.75 as the first good indication that a new attempt to break above resistance at 130.51 is developing and above here will confirm the corrective low is in place for a rally towards 138.10.

R3: 130.92

R2: 130.51

R1: 130.27

Pivot: 129.75

S1: 129.30

S2: 129.00

S3: 128.75

Trading recommendation:

We will buy EUR at 129.10 or upon a break above 130.51. If our buy-order at 129.10 is filled, we will place our stop at 128.75.

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