Elliott wave analysis of EUR/JPY for June 14 – 2016
June 14, 2016 9:00 am
Wave summary:
The long-term corrective decline from the 149.56 high should terminate near 117.35. At the level of 117.35 wave C will be equal in length to wave A, which is the most common relationship between the two impulsive waves in a zig-zag correction.
A decline in wave C from 141.06 was very difficult to read because of the overlapping waves and a skewed triangle as wave (iv). They resemble ending diagonals as we took it at first, but when support at 120.28 gave away too, this interpretation couldn’t be correct.
A break above minor resistance at 120.32 will be a strong indication that the corrective low finally is in place, while a break above resistance at 122.23 is needed to confirm a low and that a new impulsive rally is developing.
Trading recommendation:
Buy the EUR at 117.50 with stop placed at 116.50.
The material has been provided by InstaForex Company – www.instaforex.com
Wave summary:
The long-term corrective decline from the 149.56 high should terminate near 117.35. At the level of 117.35 wave C will be equal in length to wave A, which is the most common relationship between the two impulsive waves in a zig-zag correction.
A decline in wave C from 141.06 was very difficult to read because of the overlapping waves and a skewed triangle as wave (iv). They resemble ending diagonals as we took it at first, but when support at 120.28 gave away too, this interpretation couldn’t be correct.
A break above minor resistance at 120.32 will be a strong indication that the corrective low finally is in place, while a break above resistance at 122.23 is needed to confirm a low and that a new impulsive rally is developing.
Trading recommendation:
Buy the EUR at 117.50 with stop placed at 116.50.
The material has been provided by InstaForex Company – www.instaforex.com
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