Elliott wave analysis of EUR/JPY for January 14 – 2015
January 14, 2015 7:50 am
Technical summary:
The decline has now extended beyond the 70.7% corrective target, which is a matter of concern. That said, if our count is correct the decline from the 149.84 to is a wave two and second waves are allowed to correct 100% of the first wave, so we have to be patient and look for signs of reversal. We have replaced the former channel with a pitchfork and as can be seen on the chart, we are now at the pitchfork support line at the same time the extended wave c of y is now 300% of the length of wave a of y and finally a positive divergence is seen on the indicators, which means a bottom could be nearby. However to confirm the bottom, we need a break above minor resistance at 138.91 and more importantly a break above resistance at 140.51. As long as minor resistance at 138.91 protects the upside, the trend lower is firmly in place.
Trading recommendation:
The material has been provided by InstaForex Company – www.instaforex.com
Technical summary:
The decline has now extended beyond the 70.7% corrective target, which is a matter of concern. That said, if our count is correct the decline from the 149.84 to is a wave two and second waves are allowed to correct 100% of the first wave, so we have to be patient and look for signs of reversal. We have replaced the former channel with a pitchfork and as can be seen on the chart, we are now at the pitchfork support line at the same time the extended wave c of y is now 300% of the length of wave a of y and finally a positive divergence is seen on the indicators, which means a bottom could be nearby. However to confirm the bottom, we need a break above minor resistance at 138.91 and more importantly a break above resistance at 140.51. As long as minor resistance at 138.91 protects the upside, the trend lower is firmly in place.
Trading recommendation:
The material has been provided by InstaForex Company – www.instaforex.com
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