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Elliott wave analysis of EUR/JPY for October 12, 2018

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All we need is a break above minor resistance at 130.50 to confirm that blue wave (2) has completed and blue wave (3) has taken over for a rally towards 138.10.

Short-term, we see support at 130.15 and the at 129.84. The later will ideally protect the downside, but only an unexpected break below support at 129.21 will keep the correction in blue wave (2) alive, but the potential downside should be very limited from here.

R3: 131.45

R2: 130.88

R1: 130.50

Pivot: 130.15

S1: 129.84

S2: 129.39

S3: 129.21

Trading recommendation:

We will buy a break above 130.50 and place our stop at 129.10.

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