Elliott wave analysis of EUR/JPY for October 13, 2020

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With the break below minor support at 124.33, it is clear that the rally from 122.34 has taken the shape of a leading diagonal, that completed with the test of 125.09 in wave i and wave ii is now in motion. The first corrective decline from 125.09 to 124.16 is in five waves indicating a zig-zag is in motion. After a minor rally to 124.73, we expect the second decline in wave c closer to the 50% corrective target at 123.71. Wave iv/ of one lessor degree completed at 123.80. Wave ii may well hit 123.71 - 123.80 wave ii to set the stage for the next impulsive rally higher to 127.02 and above.

R3: 124.73

R2: 124.62

R1: 124.51

Pivot: 124.47

S1: 124.29

S2: 124.04

S3: 123.80

Trading recommendation:

We have closed 50% of our long position from 123.10 at 124.35. We will re-buy EUR at 123.85 or upon a break above 125.09.

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