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Elliott wave analysis of EUR/JPY for February 4, 2016

2016-02-04-EURJPY-D.png

Wave summary:

We have evaluated our two possible counts and have decided that this count is the most favorable one. This count shows that wave [C] or [iii] is already developing for a long-term rally above 149.55 closer to 170.00.

However, in the the short term, we are likely to see a correction slightly below the area of 128.60 - 129.30 before the next rally higher. We expect the resistance line from 141.04 to be broken. This will also trigger an inverse S/H/S bottom for an anticipated rally to 138.31.

As this corrective decline is minor wave two, it could be deeper than 128.60.

Trading recommendation:

We will look for a EUR-buying opportunity near 128.60.

The material has been provided by InstaForex Company - www.instaforex.com