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Elliott wave analysis of EUR/JPY for July 5, 2016

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Wave Summary:

The clear break below the minor support line indicates that the next impulsive decline towards 108.17 has begun. We will like to see a break below minor support at 113.31 too as confirmation that this decline is unfolding now.

Resistance is now found at 114.40. This resistance needs to protect the upside otherwise the expected impulsive decline towards 108.17 will be delayed.

Trading recommendation:

You should be short on the EUR with stop at 114.45. If you are not short on the EUR yet, then sell at 113.85 or upon a break below support at 113.31 and use the same stop at 114.45. Take profit should be placed at 108.25.

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