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Elliott wave analysis of EUR/JPY for September 20, 2016

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Wave summary:

We will remain cautiously bullish as long as important support at 113.11 acts as a floor, but on the other side, a break above minor resistance at 114.30 and more importantly a break above resistance at 116.08 will be needed to ease the downside pressure and confirm a new rally to 118.47 and higher to 122.00.

If, however support at 113.11 is broken, that will shift the preferred count in favor of the triangle count and will call for one more decline below 109.48 to complete the long-term corrective decline from 149.56.

Trading recommendation:

We will buy a break above 114.30 with stop placed at 113.05 or we will sell a break below 113.11 with stop placed at 114.35 (one order done cancels the other).

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