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09.10.201805:22 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for October 9, 2018

Long-term review

Exchange Rates 09.10.2018 analysis

A strong break below 130.58 was not our preferred option. This break has more implication for our short-term count. as the decline to 129.49 meant our blue wave (4) is overlapping blue wave (1), which is not allowed under the EWP, so we have changed our short-term count and moved blue wave (1) to be the peak at 133.13 and the ongoing correction is only blue wave (2).

Blue wave (2) has already spiked the 61.8% corrective target of blue wave (1) and blue wave (C) is now equal in length to blue wave (A) indicating a bottom likely is in place at 129.49 and blue wave (3) higher is about to develop.

The first good indication this is the case is a break above resistance at 130.13 and more importantly a break above resistance at 131.42 that confirms blue wave (3) towards 138.10 is developing.

R3: 131.45

R2: 130.88

R1: 130.58

Pivot: 130.13

S1: 129.72

S2: 129.49

S3: 128.99

Trading recommendation:

We bought EUR at 130.70 and have placed our stop at 129.25. If you are not long EUR yet, the buy near 129.75 and use the same stop at 129.25.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Torben Melsted,
Analytical expert
InstaForex Group © 2007-2021
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