FX.co ★ Elliott wave analysis of EUR/JPY for September 18, 2018

There was no time for a final dip to 130.02 and short-term important resistance at 131.11 was re-tested yesterday. We expect support at 130.29 now will be able to protect the downside for the next test and likely break, this time, above the 131.11 for a continuation towards 131.99 as the next sub-target on the way higher to 136.50.

Only an unexpected break below support at 130.29 will delay the expected break above 131.11 for a dip to 130.02 from where the next impulsive rally should begin.

R3: 131.99

R2: 131.45

R1: 131.11

Pivot: 130.72

S1: 130.58

S2: 130.29

S3: 130.02

Trading recommendation:

We are long EUR from 129.11 with our stop placed at 129.40. Upon a break above resistance at 131.11 we will move our stop higher to 130.25.

If you are not long EUR yet, then buy EUR near 130.29 or upon a break above 131.11 and use the same stop at 129.40.