17.06.201609:30 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for June 17 - 2016

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.

Wave summary:

Yesterday's decline extended more than we had expected and the low was not seen before 115.46. But the rally that followed this low, looks very promising. It is clearly a five-wave rally, which indicates that a low is in place and is likely to be a long-term corrective low that we have been looking for.

In a short term, we expect that support in the 116.46 - 116.77 area will be able to protect the downside for the next rally above the minor resistance at 117.48 and more importantly above resistance at 118.10 adding confidence to the low being in place at 115.46.

Thus, we have to be aware that wave two corrections often become very deep and are allowed to correct 100% from the first impulsive wave, but they can never break the starting point of the first impulsive rally.

Trading recommendation:

Our stop at 116.50 was hit, but we will be looking for a new buying opportunity at 116.50 or upon a break above 117.48 with stop placed at 115.40.

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.