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EUR/JPY Elliott Wave Analysis
The EUR/JPY pair was trading in a sideways trend for the last few days. We can label this move with triangle (A, B, C, D, E), yesterday this major pair was trading within the downward trend, the price reached 108.95 in the New York session and we can call this move as A wave (coloured blue), we saw in the last hours of Mondays trading day a pull-back to 109.60 and we can label this move as B wave (coloured blue). Today bearish mood continue in the Asian session and with this move the EUR/JPY pair has finished final c wave of the bigger E wave (coloured green) in the point 108.70. Presently we can observe (i) wave (coloured green). Today the EUR/JPY pair is expected to test 110.00 before we can see little correction. For protecting our trade we can use Stop Loss at the 109.00 support level. Also it is necessary to consider the data concerning the EURO Final GDP q/q that can affect the rate of the pair.
Support and Resistance levels
(S3) 107.62 (S2) 108.45 (S1) 108.96 (PP) 109.80 (R1) 110.63 (R2) 111.14 (R3) 111.98
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the Upward movement. That is why Long position at levels 109.35 with Stop Loss at 109.00 and Take Profit at 110.00 are recommended.
