For Traders

Analytical Reviews

Wave analysis

18.07.201608:01 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for July 18 - 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:

The rally of the 109.48 low does display an impulsive structure, but we are not out of the woods yet. Only a firm break above important resistance at 122.00 will confirm that a long-term corrective low is in place at 109.48 and a new long-term impulsive rally is developing.

In the short term, we expect to see more correction in wave [ii] closer to 114.88 from where a new impulsive rally above 122.00 is likely for a move closer to 126.45.

That said, we cannot exclude the bearish case completely yet, and the risk remains for a break below the support line near 111.85 that will call for a new low below 109.48 closer to 106.50.

Trading recommendation:

Our stop at 115.30 was hit for a small loss. We will re-buy EUR at 115.00 with stop placed at 113.25.

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.