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Elliott wave analysis of EUR/JPY for September 5, 2019

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There was no time for a second dip to 115.83 before EUR/JPY took off impulsively and is now trading near the first serious resistance at 117.93. This resistance is expected to cap the upside in the short-term for a corrective decline to 116.61 before the next impulsive rally towards 119.52 should be expected.

At this point only an unexpected break back below 115.83 will reinstated the downtrend in wave (E).

R3: 118.70

R2: 118.30

R1: 117.93

Pivot: 117.45

S1: 117.24

S2: 117.04

S3: 116.61

Trading Recommendation:

We bought EUR at 116.80. We will take half profit here at 117.60 and keep our stop for the remaining 50% at 116.78. We will re-buy 50% at 116.80 if possible.

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