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12.10.2012 10:40 AM
EUR/JPY - Elliott Wave Analysis for October 12 - 2012

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Today's Support and Resistance Levels:

S1: 101.21                    R1: 101.72

S2: 100.59                    R2: 101.89

S3: 100.15                    R3: 102.08

 

Technical Overview:  

 

Our triangle scenario is working well. We saw the expected move higher yesterday, as wave D of the triangle is developing. In the short term we are looking for a minor correction down to 101.10 before the next move higher towards the 101.89 - 102.08 area starts. We are expecting wave D ends before the final E wave of the triangle takes us down to 101.10 and maybe even 100.89 to set the stage for the next impulsive rally higher.
The waves within a triangle tend to alternate with each other. That is why we expect only a relatively small move higher once the ongoing weak reaction is finished near 101.10.

 

Trading Recommendation: 

You should be long EUR from 100.25 and you should lift your stop to break even at 100.25. Take profit at 101.85.

Torben Melsted,
Analytical expert of InstaForex
© 2007-2026
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