25.08.201508:56 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for August 25 - 2015

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Technical summary:

The decline from 139.02 was much stronger than expected, which has caused a change of the short-term count. The question is whether the rally from 133.27 was a leading diagonal or just a B-wave correction?

If the rally was a leading diagonal, it will of course have bullish implications and call for an impulsive rally in wave (iii) once wave (ii) is over. A rally above 139.02 will favor this scenario and a rally towards 145.33.

The alternative count that sees this rally as a B-wave will have bearish implications. If this scenario is to be proven correct, a break below 133.27 is needed, which will call for a decline to 131.77 to end the correction from 141.06.

Trading recommendation:

Our stop at 138.40 was hit for a nice little profit. Because of the split scenario decision, we will stay neutral and only sell a break below 133.27 or buy a break above 139.02.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.