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Trade Idea: EUR/JPY - Hold long entered at 122.50 Print E-mail
Elliott Wave Daily | Written by Action Forex | Jan 11 17 09:28 GMT
EUR/JPY - 122.38

Recent wave: wave v of (C) ended at 94.12 and major correction in wave A has ended at 149.79

Trend: Sideways

Original strategy:

Bought at 122.50, Target: 124.50, Stop: 121.90

Position: - Long at 122.50
Target:  - 124.50
Stop: - 121.90

New strategy :

Hold long entered at 122.50, Target: 124.50, Stop: 121.90

Position: - Long at 122.50
Target:  - 124.50
Stop:- 122.00

Although the single currency has remained under pressure after retreating sharply from 123.73 and further consolidation would take place, as long as indicated support at 122.01 (last week's low) holds, mild upside bias remains for another rebound to said resistance but break of resistance at 123.86 is needed to retain bullishness, bring retest of 124.10, once this level is penetrated, this would confirm recent upmove has resumed and extend further gain in wave v of larger degree wave iii to 124.40-50, then towards 125.00.

In view of this, we are holding on to our long position entered at 122.50. Below said support at 122.01 would risk weakness to 121.58 but only break there would bring a stronger retracement of recent upmove to 121.00 first. 

Our latest preferred count is that wave (ii) is ABC-X-ABC which ended at 123.33 and wave (iii) is unfolding with wave iii ended at 100.77, followed by wave iv at 111.57 and wave v as well as the wave (iii) has ended at 97.04, followed by wave (iv) at 111.43 and wave (v) has ended at 94.12 which is also the end of the larger degree v, this also implied the major wave (C) has also ended there, hence major correction has commenced from there with (A) leg unfolding in its lower degree wave c which has possibly ended at 145.69. Under this count, A-B-C wave (B) has commenced with A leg ended at 136.23, wave B at 143.79 and wave C has possibly ended at 149.79.

Our larger degree count is that the decline from 139.26 is wave (C) and is sub-divided into a diagonal triangle i-ii-iii-iv-v with wave i - 105.44, wave ii- 123.33, wave iii - 97.03, wave iv - 111.43, followed by the final wave v as well as the end of wave (C) at 94.12, this also mark the bottom of larger degree wave B. Under this count, major rise in wave C has commenced as an impulsive wave with minor wave III ended at 145.69, wave V is still in progress for further gain to 150.00. Having said that, this so-called wave V could well be the first leg of larger degree 5-waver wave C and this wave C should bring at least a retest of wave A top at 169.97 (July 2008).


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Candlesticks Intraday Trade Ideas Update Schedule (GMT):
1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530

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