FX.co ★ Elliott wave analysis of EUR/JPY for September 26 - 2019

After a day trading in a very narrow band between 117.80 - 118.01 we must wait patiently whether a break above short-term resistance at 118.56 is seen. Indicating that the correction in red wave ii is complete and a new impulsive rally is ready to develop for a move higher to at least 121.98 or a break below short-term important support at 117.54 is seen for a final dip closer to 117.15 to complete red wave ii and set the stage for a new impulsive rally in red wave iii towards at least 121.98.

Thus, we should wait for the next impulsive rally to start.

R3: 118.79

R2: 118.56

R1: 118.35

Pivot: 118.21

S1: 118.07

S2: 117.72

S3: 117.54

Trading recommendation:

We are long EUR from 118.25 with our stop placed at 117.50