Elliott wave analysis of EUR/JPY for September 3, 2018

EUR/JPY has declined nicely and is now hovering just below our 128.78 - 129.00 target zone. We are looking for a recovery towards 129.85 next and from there it will be decided, whether more corrective downside pressure is needed or not.

In the short-term, a break above resistance at 129.14 will confirm the expected rally towards 129.85 and maybe even a continuation towards 130.87 and beyond.

If support at 128.54 gives away first, then a minor dip to support at 128.30 should be expected before a recovery is seen, but the potential downside should be limited for now.

R3: 129.85
R2: 129.32
R1: 129.14
Pivot: 128.83
S1: 128.54
S2: 128.30
S3: 127.94

Trading recommendation:
We took profit on our short position at 129.10 for a nice little profit of 58 pips and at the same time bought EUR. We have placed our stop at 128.10.

Analysis are provided by InstaForex