EUR/JPY Elliott Wave
Last week the EUR/JPY pair was trading in an upward move, developing impulsive 5 wave (coloured purple) of the bigger wave 3 (coloured blue). During the Friday's Asian and European sessions we could observe a strong ascending move from 99.60 towards 100.42 level and we can consider this move as the end of the impulsive 3 wave (coloured blue). Therefore, during the New York session when development of the 4 wave (coloured blue) starts we could observe the price pushing lower. Today the EUR/JPY pair was trading around 100.00 level and we are expecting to see the price around 99.30 soon. In accordance with our wave rules and taking into account that the wave 4 should retrace 100% of the wave 2, we can define the potential targets with measuring 2 wave, with Take Profit 1 at 99.12 (61.8% of wave 2) and Take Profit 2 at 98.32 (100% of wave 2). To reduce the risk, we can use resistance at 100.45 as Stop Loss. Also it is necessary to monitor the JPY Household Confidence, Economy Watchers Sentiment, BSI Manufacturing Index, M2 Money Stock y/y and EU French Industrial Production m/m, Sentix Investor Confidence data that can change the rate of the pair.
Support and Resistance
(S3) 99.25 (S2) 99.57 (S1) 99.77 (PP) 100.09 (R1) 100.41 (R2) 100.61 (R3) 100.93
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 99.95 with Stop Loss 100.45, Take Profit 1 at 99.12, and Take Profit 2 at 98.32 are recommended.