Elliott wave analysis of EUR/JPY for September 21, 2016
September 21, 2016 5:06 am
Wave summary:
Ahead of the BoJ meeting today, the JPY strengthened and EUR/JPY broke support at 113.11 indicating more downside pressure, which was seen to 112.49. BoJ decided to keep its negative rates unchanged. However, it abandoned the base money target and replaced it with a set of “yield curve controls” and finally it said, that it would continue to expand the monetary base until inflation exceeds 2%. All this together has weakened the JPY, which quickly moved back above 113.11 and more importantly above 114.03, which indicates more upside towards 116.08 and above here confirms that a long-term corrective low was seen at 109.49 and new long-term rally is developing.
That said, the uncertainty is huge at this point and we are currently in kind of “no man’s land”, where both directions still is possible.
Trading recommendation:
We sold at 113.10 and will take our stop here at 114.17 and buy EUR and place our stop at 112.45.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Wave summary:
Ahead of the BoJ meeting today, the JPY strengthened and EUR/JPY broke support at 113.11 indicating more downside pressure, which was seen to 112.49. BoJ decided to keep its negative rates unchanged. However, it abandoned the base money target and replaced it with a set of “yield curve controls” and finally it said, that it would continue to expand the monetary base until inflation exceeds 2%. All this together has weakened the JPY, which quickly moved back above 113.11 and more importantly above 114.03, which indicates more upside towards 116.08 and above here confirms that a long-term corrective low was seen at 109.49 and new long-term rally is developing.
That said, the uncertainty is huge at this point and we are currently in kind of “no man’s land”, where both directions still is possible.
Trading recommendation:
We sold at 113.10 and will take our stop here at 114.17 and buy EUR and place our stop at 112.45.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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