19.09.201608:08 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for September 19, 2016

Wave Summary:

The break below 113.90 is disappointing and has invalidate the 1-2 / 1-2 option. Instead it keeps the two main options firmly alive. As long as support at 113.11 act as a strong floor, the preferred count remains, that a new impulsive rally is developing from 109.49. However, the alternative count shows a triangle consolidation has been unfolding since the 109.49 low and wave E just completed with the test of 116.37. If this outlook is correct then important support at 113.11 soon will be taken out for a continuation lower to at least 111.94 and possibly even lower to 109.37 before a more substantial correction should be expected.

Trading recommendation:

Our stop at 113.85 was hit. We will place a buy order and a sell order. We will buy a break above 114.30 or we will sell a break below 113.11 (one order done cancels the other).