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Elliott wave analysis of EUR/JPY for September 6, 2016

analytics57ce50f5ded70.png

Wave summary:

Red wave [iv] moved slightly lower than the expected 115.44 (the low has been seen at 115.07). Holding nicely above 114.94, it keeps our impulsive count alive for the final rally in red wave [v] towards 116.63 and possibly even 117.60 before completing this impulsive rally. This is calling for a correction back to 115.07 from where the next impulsive rally could begin.

Even though we expect a correction from 117.60, we do not recommend anyone going short as we have entered wave three higher and it can begin accelerating any time now.

Trading recommendation:

We are long EUR from 114.05 and will move our stop higher to 115.45 once minor resistance at 116.16 is broken and take profit will be placed at 117.50. If you are not long EUR already wait for the next correction to 115.07 before entering long.

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