EUR/JPY Elliott Wave
From the beginning of August the EUR/JPY pair was trading in an upward move, developing impulsive (3) wave (coloured green) of the bigger (A) correction (coloured orange). Yesterday, during the European session, we could observe a descending movement towards the 100.17 level. Therefore, during the early New York session, the EUR/JPY pair continued trading in a bearish mood and the price reached 99.54 level (4 wave end). After this major found support at 99.54 level, we could observe a strong ascending move for developing of the final 5 wave (coloured blue) of the bigger (3) wave (coloured green). In accordance with our wave rules and taking into account that the wave 5 retraces 161.8% of the wave 1, we can define the potential targets with measuring 1 wave, with Take Profit at 104.10 (161.8% of wave 1). Support Point at 101.00 can be used as Stop Loss.
Support and Resistance
(S3) 99.02 (S2) 99.51 (S1) 99.81 (PP) 100.30 (R1) 100.79 (R2) 101.09 (R3) 101.58
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 102.20 with Stop Loss 101.00 and Take Profit 104.10 are recommended.