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Elliott wave analysis of EUR/JPY for October 3, 2016

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EUR/JPY - Daily

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EUR/JPY - 4 Hourly

Wave summary:

The correction in the wave ii can make the price move a little higher to 114.54 before turning lower in the wave iii towards 108.03 on the way lower to the ideal downside target at 104.15. Once this target is reached, the long-term corrective decline from 149.56 is expected to be completed, and a new impulsive rally higher will be expected.

For now, we still focus on the downside for a break below a minor support at 113.53 and more importantly below support at 112.56 confirming the decline to 108.03 and below.

Trading recommendation:

We are short EUR from 112.85 with stop placed at 115.45. If you are not short EUR yet, then sell near 114.54 or upon a break below 113.53 and use the same stop at 115.45

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