HomeTrade IdeasElliott Wave DailyTrade Idea: EUR/JPY - Buy at 122.10

Trade Idea: EUR/JPY – Buy at 122.10

EUR/JPY – 122.95

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

Trend: Near term up

Original strategy:

Buy at 122.85, Target: 124.55, Stop: 122.25

Position: –
Target: –
Stop: –

New strategy :

Buy at 122.10, Target: 124.10, Stop: 121.50

Position: –
Target:  –

As the single currency has retreated after marginal rise to 123.68, suggesting minor consolidation below this level would be seen and pullback to 122.60 support is likely, however, reckon downside would be limited to 122.00-10 and bring another rise later, above said resistance at 123.68 would extend gain to previous chart resistance at 124.10 but break there is needed to retain upside bias for resumption of early upmove to 124.50-60, then towards 125.00 later. 

In view of this, we are looking to buy euro on further subsequent pullback as 122.00-10 should limit downside and bring another rise. Below previous resistance at 122.01 would defer and risk correction to 121.70 but break of 121.25-30 is needed to signal top is formed, bring retracement of recent rise to 120.85-90, however, support at 120.60 should remain intact.

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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