EUR/JPY Elliott Wave
For the last few days the EUR/JPY pair was trading in a downward channel, developing corrective wave A (coloured blue) of the bigger wave (4) (coloured green). Yesterday during the Asian and European sessions, we could observe a descending movement from 102.38 towards the 100.93 level and we can consider this move as the end of the impulsive (3) wave (coloured purple) of the bigger A wave (coloured blue). Therefore, during the New York session, the EUR/JPY pair started pushing higher when development of the corrective (4) wave (coloured purple) start. At the moment, the EUR/JPY pair is trading around 102.10 level and we are expecting to see price lower today. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 100.64 (100% of wave 1). To reduce the risk, we can use invalidation at 102.40 level as Stop Loss. Also it is necessary to monitor the EUR Belgium NBB Business Climate data that can change the rate of the pair.
Support and Resistance
(S3) 100.13 (S2) 100.69 (S1) 101.03 (PP) 101.59 (R1) 102.15 (R2) 102.49 (R3) 103.05
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 101.80 with Stop Loss 102.40 and Take Profit at 100.64 are recommended.