The EURJPY pair is seen to be consolidating at the moment, looks to be in its wave 4 of the 5 wave’s decline that resumed from 118.45 levels earlier. Please note that the pair has reversed lower from 114.00/10 levels as expected yesterday which is also fibonacci 0.382 resistance of wave 3. The wave structure remains unchanged for now and indicates that EURJPY has formed major top at 121.90 levels earlier, and has also carved out a lower high at 118.50 levels as seen here. Furthermore, the pair has reversed lower from fibonacci 0.618 resistance levels of the drop between 122.90/122.00 through 109.00 levels respectively. At this moment the pair looks to have terminated wave 4 already, within its 3rd wave drop from 118.50 levels. It is hence recommended to remain short now with risk above 115.00 levels. Immediate resistance is seen at 115.00 levels, while support is at 110.50 levels respectively.
Trading recommendations:
Remain short now; stop above 115.00, target is open.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Technical outlook and chart setups:
The EURJPY pair is seen to be
consolidating at the moment, looks to be in its wave 4 of the 5 wave’s decline
that resumed from 118.45 levels earlier. Please note that the pair has reversed
lower from 114.00/10 levels as expected yesterday which is also fibonacci 0.382
resistance of wave 3. The wave structure remains unchanged for now and
indicates that EURJPY has formed major top at 121.90 levels earlier, and has
also carved out a lower high at 118.50 levels as seen here. Furthermore, the
pair has reversed lower from fibonacci 0.618 resistance levels of the drop
between 122.90/122.00 through 109.00 levels respectively. At this moment the
pair looks to have terminated wave 4 already, within its 3rd wave
drop from 118.50 levels. It is hence recommended to remain short now with risk
above 115.00 levels. Immediate resistance is seen at 115.00 levels, while
support is at 110.50 levels respectively.
Trading recommendations:
Remain short now; stop above
115.00, target is open.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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