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Elliott wave analysis of EUR/JPY for October 4, 2016

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Wave summary:

The correction in wave ii is extending closer to the 61.8% corrective target at 114.54 and might even spike this resistance slightly, but wave ii should be close to completion for the next impulsive decline towards the ideal target near 104.15 to complete the long-term corrective decline from 149.56.

Short term, a break below minor support at 113.59 will indicate that wave ii is complete and wave iii lower to 108.03 has taken over on the way to 104.15.

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 114.90 or upon a break below 113.59 and use the same stop at 115.45.

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