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06.10.2016 09:09 AM
Elliott wave analysis of EUR/JPY for October 6, 2016

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Wave summary:

We have already seen a test of minor resistance at 116.08 and we should now expect support in the 115.00 - 115.25 area to act as a floor for the next rally higher to 117.89 to completed wave i of (iii). Longer term, the target for wave (iii) is seen at 126.59.

A break above minor resistance at 116.37 will confirm that the decline from 118.47 only has been in three waves, which is a sign for a correction and more importantly will confirm that a new impulsive rally is developing.

Trading recommendation:

We will wait to buy the wave ii correction which is expected from near 117.89.

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