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Elliott wave analysis of EUR/JPY for May 13 - 2016

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Wave summary:

With a high seen at 124.65, the first impulsive rally of the 121.46 low topped out just below our ideal target at 124.73.

We are now looking for a correction in wave [ii] into the 122.68 - 123.05 area as a low for wave [ii] and setting the stage for a new strong rally in wave [iii] higher to 128.22 as the next upside target.

Short-term minor resistance is seen at 124.20 that ideally will protect the upside for a continuation lower to 123.05 and maybe even lower to 122.68 before moving higher again.

Trading recommendation:

Our take profit at 124.65 was hit exactly for a nice profit. We will re-buy EUR at 123.10.

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