HomeTrade IdeasElliott Wave DailyTrade Idea: EUR/JPY - Stand aside

Trade Idea: EUR/JPY – Stand aside

EUR/JPY – 120.07

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

Trend: Near term down

New strategy :

Stand aside

Position: –
Target:  –
Stop:-

Despite yesterday’s rally to 120.88, the subsequent retreat suggests consolidation would be seen and pullback to 119.50-60 cannot be ruled out, however, reckon downside would be limited to 118.92 support and bring another rebound later. Only break of said resistance at 120.88 would signal the rise from 114.85 low has resumed and extend further gain to 121.00, then towards 121.80-85 but resistance at 122.26 should remain intact.

In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Below 118.92 support would defer and suggest a temporary top is formed, bring weakness to 118.50, however, downside should be limited to 118.00-10 and previous resistance at 117.82 (now support) should hold and bring another rise later. 

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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