Elliott wave analysis of EUR/JPY for October 14, 2020

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EUR/JPY has already the expected target-zone between 123.71 - 123.80 (the low has been seen at 123.60) this is enough to complete wave ii and we will now be looking for a break above minor resistance at 123.99 and more importantly a break above resistance at 124.46 to confirm that wave ii has completed and wave iii towards the 161.8% extension-target of wave i seen at 128.02.

Support is now seen at 123.60 and then at 123.39. A break below 123.60 will call for a slightly deeper correction to 123.39 before wave ii finally is complete.

R3: 124.46

R2: 124.10

R1: 123.99

Pivot: 123.85

S1: 123.60

S2: 123.39

S3: 123.00

Trading recommendation:

We are long EUR from 50% 123.10 and re-bought 50% at 123.85, which gives us an average of 123.48. We will place our stop at 123.00.

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