FX.co ★ Elliott wave analysis of EUR/JPY for October 6, 2017

Wave summary:

We have seen the expected break below support at 132.16, that confirms more downside pressure towards at least 130.37 and possibly even directly lower. We are currently in wave (E) of a huge triangle consolidation dating back to July 2008 and this (E) has a lot more room to cover to the downside. Ideally, it will complete near 117.72, but then we have to be aware that (E)-waves can be sub-normal and end prematurely.

R3: 1.3278

R2: 132.45

R1: 132.20

Pivot: 132.00

S1: 131.70

S2: 131.45

S3: 131.12

Trading recommendation:

We are short EUR from 133.00. We will move our stop lower to 132.85. If you are not short EUR yet, then sell near 132.20 or upon a break below 131.81 for a decline to 130.37.