Elliott wave analysis of EUR/JPY for October 8 - 2020

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EUR/JPY stopped at the 50% corrective target at 123.85 and started a new impulsive wave higher to test the resistance-line from the 127.02 high. Once this resistance-line is broken, EUR/JPY may gain upside momentum for the next push higher to 126.12 and ultimately above the former peak at 127.02.

Support is now seen at 124.55 and the in the 124.24 -124.34 area, which may protect the downside for the final break above the resistance-line near 124.75.

R3: 125.45

R2: 125.25

R1: 125.04

Pivot: 124.75

S1: 124.55

S2: 124.34

S3. 124.24

Trading recommendation:

We are long EUR from 123.10 and we will raise our stop to 123.75.

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