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Elliott wave analysis of EUR/JPY for May 23, 2016

analytics5742a6e9d70d7.png

Wave summary:

The failure to break above resistance at 124.18 indicates that the correction in wave [ii] is still unfolding as a complex double zig-zag. This also means that the "old" 122.10 target has been revived. Once this target has been tested, a new impulsive rally to above 126.43 should be expected.

Short-term minor resistance is seen at 123.45 with backup resistance seen at 123.64.

Trading recommendation:

We are long EUR from 123.30 and will move our stop higher to 1.2310 and close at break-even if possible.

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