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Elliott wave analysis of EUR/JPY for September 27, 2018

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The break below minor support at 132.32 invalidated the triangle option and instead favor a flat consolidation building. That means a second decline to support 131.88 should be expected before the next impulsive rally higher to 134.07 to complete blue wave (3).

That said, it's possible that a larger and more time consuming ascending triangle consolidation is developing. In this case, we will see a new spike to 133.13 and then a final dip to just above 132.20 before the next rally towards 134.07.

Trading recommendation:

We are long EUR from 129.11 with our stop placed at 130.85. Upon a break above 113.13 we will raise our stop to 131.80 and we will take profit on half our position at 133.90.

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