Elliott wave analysis of EUR/JPY for October 5, 2018

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EUR/JPY dipped below support at 130.94, but did not have the power to challenge the 130.69 low, this indicate to us, that a possible low now is in place at 130.69 has we expected all along and renewed upside pressure is building. To confirm that blue wave (4) has completed and blue wave (v) is developing a break above resistance at 131.57 and more importantly a break above 131.97 that confirms blue wave (5) is unfolding towards 133.96.

Even if support at 130.74 is taken out, then the potential downside should remain very limited. However, we do not expect it will.

R3: 131.98

R2: 131.57

R1: 131.37

Pivot: 131.18

S1: 131.02

S2: 130.74

S3: 130.69

Trading recommendation:

We are long EUR from 131.50 with our stop placed at 130.65. If you are not long EUR yet, the wait a buy a break above 131.97 and start by using the same stop at 130.65.

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