Elliott wave analysis of EUR/JPY for October 2, 2020

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EUR/JPY failed to reach the former peak at 124.25, which means a fifth failure has been seen and we can now expect a second dip to 123.50 and likely even lower to the 61.8% corrective target of wave i at 123.09 before the next impulsive rally higher.

We will likely see support at 123.50 being able to reject the first test, but the second test will most likely break below 123.50 for the final dip towards 123.09 to complete wave ii and set the stage for wave iii higher through resistance at 124.25.

R3: 124.20

R2: 124.00

R1: 123.80

Pivot: 123.73

S1: 123.68

S2: 123.50

S3: 123.35

Trading recommendation:

We are long EUR from 122.95 and we will take 50% at 123.90 or upon a break below 123.68 and we will re-buy the 50% at 123.25

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