Elliott wave analysis of EUR/JPY for October 4, 2018

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Ideally minor support at 130.94 will be able to protect the downside for a new impulsive rally above minor resistance at 131.49 and more importantly above resistance at 131.98 that confirms blue wave (5) towards 133.96 is developing.

Should an unexpected break below support at 130.94 be seen, that would indicate a final dip to just below 130.69 however the potential downside should remain very limited.

R3: 133.13

R2: 132.49

R1: 132.00

Pivot: 131.42

S1: 131.07

S2: 130.94

S3: 130.69

Trading recommendation:

We bought EUR at 131.50 with our stop placed at 130.65. If you are not long EUR yet, then buy a break above minor resistance at 131.49 and use the same stop at 130.65.

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