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EUR/JPY Elliott Wave
For the last few days the EUR/JPY pair was trading in a downward move, impulsive 3 wave (coloured blue) of the bigger C wave (coloured green) was developing. Yesterday during the Asian and European sessions we could observe descending movement from 101.20 towards the 100.33 level and we can consider this move as the end of the impulsive 3 wave (coloured blue). Therefore, during the early New York session the EUR/JPY pair started pushing higher and the price retraced back to 101.20 level. At the moment this currency pair is trading around 101.80 level and we are expecting to see the price lower when development of the final impulsive 5 wave (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 99.41 (100% of wave 1). To reduce the risk, we can use invalidation at 102.17 level as stop loss.
Support and Resistance
(S3) 99.88 (S2) 100.23 (S1) 100.45 (PP) 100.80 (R1) 101.15 (R2) 101.37 (R3) 101.72
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 101.50 with stop loss 102.17 and take profit at 99.41 are recommended.
