Elliott wave analysis of EUR/JPY for October 7, 2020

analytics5f7d442178a98.jpg

EUR/JPY first made a minor correction to 124.23 ( we expected a dip from here to 124.39) and the pushed higher to peak at 124.73 just below our ideal target at 124.87. This completed sub-wave red wave i/ and we are now in sub-wave red wave ii// The pair may bottom at the 61.8% corrective target of red wave i/ at 123.66 from where a new impulsive rally is expected in red wave iii/ of red wave iii. This wave may become the strongest and easily rally to 126.03 and above the former peak at 127.02.

R3: 124.87

R2: 124.27

R1: 124.10

Pivot: 124.01

S1: 123.66

S2: 123.38

S3: 123.17

Trading recommendation:

We are long EUR from 123.10 with our stop placed at 123.45. Buying near 123.66 with a stop at 123.45 or more conservativly at 123.05 should prove to be a low-risk buying opportunity.

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