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Elliott wave analysis of EUR/JPY for October 10, 2016

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EUR/JPY - Daily

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EUR/JPY - 4-hourly

Wave summary:

EUR/JPY is currently backtesting the minor resistance-line from 118.27, this line now act as support for for wave iv and should soon send prices higher towards the 116.74 - 117.23 area to complete the first impulsive rally in wave (iii) and set the stage for a decline towards at least the low of wave iv of a smaller degree. As this wave iv isn't complete yet, we don't know where this low is, but likely closer to here.

Short term, a break above minor resistance at 115.69 will confirm that wave iv is complete and wave v higher towards 116.74 - 117.23 is unfolding.

Trading recommendation:

We are waiting for wave ii of (iii) to unfold before we will engage in trading long here.

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