Elliott wave analysis of EUR/JPY for September 11, 2018
The corrective decline in red wave (2) seems to have bottomed just above the 50% corrective target at 127.60. The following rally looks nice and strong and has already tested short-term important resistance at 129.11. A clear break above this resistance will confirm that red wave (2) is complete and red wave (3) is taking over for a rally towards at least 136.50 and possibly even move higher.
Short-term, we expect support to be seen in the 128.33 – 128.47 area for the expected break above 129.11. That said, as long as resistance at 129.11 has not been broken clearly, we must accept the possibility of a final dip to just below 127.85, but the odds for this outcome, seems quite low.
We have bought EUR at 129.11 and we will place our stop at 127.75. If you are not long EUR yet, then buy a possible correction back into the 128.33 – 128.47 area and use the same stop at 127.75.