Elliott wave analysis of EUR/JPY for August 5, 2016

Source: Forex Analysis

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Wave summary:

The most recent price action is of concern to our long-term bullish outlook, but as long as important support at 110.79 is able to protect the downside, we will keep the bullish outlook as out preferred count. Under this count, we need a break above minor resistance at 113.27 to strongly indicate the completion of wave [ii] and the on-set of wave [iii] higher towards 124.55 and likely above.

If however the important support at 110.79 is broken, that will leave us with a three wave rally of the 109.48 low and call for a new test of this low and continuation lower to 106.03 before the long term corrective decline from 149.56 finally comes to an end.

Trading recommendation:

We will only buy upon a break above 113.27. If done stops will be placed just below the most recent low.

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