Elliott wave analysis of EUR/JPY for October 3, 2018

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The correction in blue wave (4) moved lower than expected and hit support at 130.71. Despite the deeper than expected correction in blue wave (4) the overall count remains the same and more upside should still be seen. The target for blue wave (5) and red wave (3) is see at 133.96 and a break above minor resistance-line near 132.13 will be the first good indication that blue wave (5) is developing, while a break above resistance at 132.46 will confirm blue wave (5) is developing towards 133.96.

Support at 130.94 will ideally be able to protect the downside from here.

R3: 133.96

R2: 133.13

R1: 132.46

Pivot: 132.00

S1: 131.42

S2: 130.94

S3: 130.71

Trading recommendation:

Our stop at 130.85 was hit for a profit of 174 pips. We are looking for a new buying opportunity 131.50 or upon a break above 132.13. Our stop will be placed at 130.65.

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