Elliott wave analysis of EUR/JPY for October 31, 2013
October 31, 2013 6:45 am
Today’s Support and Resistance levels:
R3: 136.27
R2: 135.76
R1: 135.27
Current Spot: 134.89
S1: 134.76
S2: 134.26
S3: 133.88
Technical summary:
Having reviewed the price action since the mid-June low at 124.96, we have decided to shift our preferred count to the above. Instead of triangle formation, we have seen a slow overlapping move higher, and we think that an ending diagonal describes this move in the best way. As it can be seen, we are currently in the last wave higher towards a high of 138.39 (wave iii can not be the shortest of the impulsive waves). Ending diagonal consists of three wave zig-zags of wave v, we have only seen the first leg (wave a) of this zig-zag and is currently working on the b-wave, which is likely to be a flat correction. If this is correct, we will likely see a break below 134.76 indicating a decline to just below 133.60, before the final rally higher to finish wave iv of 5.
Trading recommendation:
Place a stop and reverse your long EUR positions from 134.65 to 134.70. If done, place your new stop at 135.55.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 136.27
R2: 135.76
R1: 135.27
Current Spot: 134.89
S1: 134.76
S2: 134.26
S3: 133.88
Technical summary:
Having reviewed the price action since the mid-June low at 124.96, we have decided to shift our preferred count to the above. Instead of triangle formation, we have seen a slow overlapping move higher, and we think that an ending diagonal describes this move in the best way. As it can be seen, we are currently in the last wave higher towards a high of 138.39 (wave iii can not be the shortest of the impulsive waves). Ending diagonal consists of three wave zig-zags of wave v, we have only seen the first leg (wave a) of this zig-zag and is currently working on the b-wave, which is likely to be a flat correction. If this is correct, we will likely see a break below 134.76 indicating a decline to just below 133.60, before the final rally higher to finish wave iv of 5.
Trading recommendation:
Place a stop and reverse your long EUR positions from 134.65 to 134.70. If done, place your new stop at 135.55.
The material has been provided by InstaForex Company – www.instaforex.com
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