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Elliott wave analysis of EUR/JPY for October 21, 2016

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Wave summary:

Ideally Wednesday's low at 113.10 will continue to act as a floor for a break above 113.85 and more importantly above resistance at 114.52 that will call for a new rally to 116.28 and only above here will confirm that the bottom of the long-term corrective decline from 149.56 finally is in place with the test of 109.48. We are working with a bullish count already, but we do not yet have the final confirmation that this count is correct. A break above 116.28 will be a strong indication that this is indeed the case and call for much more upside in the longer term.

Trading recommendation:

We will buy a break above 113.85 and place our stop at 113.05.

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