Elliott wave analysis of EUR/JPY for October 5 – 2016
October 5, 2016 12:55 pm
Wave summary:
The rally is back above the triangle resistance-line near 115.20 is not consistent with the expected final decline to 104.15. The break above resistance at 115.20 has revived the “old” bull scenario indicating the long term corrective decline from 149.56 was completed with the test of 109.48 in late June and all the price-action since then has been part of a new impulsive rally.
In the short term, we would like to see resistance at 116.37 and more importantly at 118.47 be taken out too, as it will confirm the impulsive rally back to and above the mid-May 2014 high at 149.56.
Short-term support is now seen at 112.96, and this support should act as a floor for the next rally above 116.37 and even better 118.47.
Trading recommendation:
As we have been stopped out, we will be looking for a new buying opportunity at 113.20 with stop placed at 112.00.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Wave summary:
The rally is back above the triangle resistance-line near 115.20 is not consistent with the expected final decline to 104.15. The break above resistance at 115.20 has revived the “old” bull scenario indicating the long term corrective decline from 149.56 was completed with the test of 109.48 in late June and all the price-action since then has been part of a new impulsive rally.
In the short term, we would like to see resistance at 116.37 and more importantly at 118.47 be taken out too, as it will confirm the impulsive rally back to and above the mid-May 2014 high at 149.56.
Short-term support is now seen at 112.96, and this support should act as a floor for the next rally above 116.37 and even better 118.47.
Trading recommendation:
As we have been stopped out, we will be looking for a new buying opportunity at 113.20 with stop placed at 112.00.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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