FX.co ★ Elliott wave analysis of EUR/JPY for October 8 - 2019

EUR/JPY is showing the first serious signs of a bottom being in place at 117.02. We have now seen a break above minor resistance at 117.63 and we will be looking for a clear break above resistance at 118.47 to confirm that wave ii has completed and a new impulsive rally in wave iii is developing. The minimum target for wave iii is seen at 121.93 but it is likely that wave iii extend beyond 121.93 for a move closer to 125.34 before the next larger correction should be expected.

For now, look for a test of short-term important resistance at 118.47 soon.

R3: 118.47

R2: 118.18

R1: 118.02

Pivot: 117.90

S1: 117.66

S2: 117.41

S3: 117.22

Trading recommendation:

We are long EUR from 117.20 and we will move our stop higher to 116.95