Elliott wave analysis of EUR/JPY for October 4 - 2019

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EUR/JPY broken below short-term key-support at 117.43 is indicating a final dip closer to the 117.14 - 117.28 area (the low has been seen at 117.05). This new low for wave ii has been followed by a clear loss of downside momentum and we expect a turn higher shortly. A break above minor resistance at 117.63 will be the first good indication that wave ii has completed and wave iii higher to 121.93 is developing, while a break above resistance at 118.47 confirms the low is in place and a new impulsive rally is developing.

R3: 118,47

R2: 118.01

R1: 117.67

Pivot: 117.43

S1: 117.05

S2: 116.88

S3: 116.65

Trading recommendation:

We will buy EUR here at 117.20 with our stop placed at 116.20. A more conservative approach will be to wait for a break above 117.63 before buying EUR

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