Elliott wave analysis of EUR/JPY for September 27, 2017

EUR/JPY - 4-Hourly

EUR/JPY - 30-Minutes

Wave summary:

We have seen a nice five-wave decline from 134.41 to 131.70, which adds confidence in our assumption that wave (D) of the huge triangle consolidation did complete prematurely at 134.41. This means wave (E) now is developing. We have to say that E-waves of triangles is tricky as they can unfold as sub-normal waves, they can be of normal length and they can be triangles themselves. So the best way to handle them is to expect the pair to follow the normal guidelines, but at the first unexpected move they should be considered complete.

The normal behavior for this wave (E) would be a decline to at least 125.53 and likely closer to 119.68.

R3: 133.83

R2: 133.38

R1: 132.60

Pivot: 132.25

S1: 131.93

S2: 131.70

S3: 131.30

Trading recommendation:

We will sell EUR at 133.25 or upon a break below 131.93.

The material has been provided by InstaForex Company - www.instaforex.com