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Elliott wave analysis of EUR/JPY for October 18, 2016

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Wave summary:

The outlook remains bullish, suggesting a clear break above minor resistance at 115.05 and more importantly above resistance at 116.28 that confirms a rally towards 122.00 and above. However, as long as minor resistance at 115.05 remains intact, we must allow for more sideways consolidation. Only a break below support at 113.90 will delay the expected rally higher for a decline closer to the support-line near 113.00 before the next rally higher should be expected.

Trading recommendation:

We are long EUR from 114.56 with stop placed at 113.90. If you are not long EUR yet, then buy near 114.35 or a break above 115.05 and use the same stop at 113.90.

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