Elliott wave analysis of EUR/JPY for October 1, 2020

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EUR/JPY hit the bottom at 123.50 for one more rally to just above 124.25 to complete wave i of 3/. Once wave i is complete, we should see a correction in wave ii towards solid support near 123.30 before the next impulsive rally in wave iii of 3/. Wave iii of 3/ should be the strongest of the waves and push EUR/JPY a lot higher and ultimately through the former peak at 127.02.

Support is now seen at 123.62 and then at 123.50.

R3: 124.58

R2: 124.25

R1: 123.94

Pivot: 123.75

S1: 123.62

S2: 123.50

S3: 123.30

Trading recommendation:

We are long EUR from 122.95 and we will move our stop higher to 123.45 and take 50% profit at 124.25.

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