Elliott Wave Analysis of EUR/JPY for March 3, 2016
Wave summary:
The rally from 122.08 seems to have topped at 124.36. The failure to take out the 125.01 high does indicate that a running triangle is developing, but not an expanded flat. We will totally rule out the possibility of the expanded flat, but the odds now favor a running triangle (it's called a running triangle because red wave b broke below the starting point of red wave a).
If a running triangle is indeed building, then we should look for sideways consolidation around 123,00 before the final thrust lower towards 119.90.
Trading recommendation:
Our stop at 123.18 was hit for a small profit. With the prospect of a running triangle unfolding, we will be looking for a new EUR selling opportunity. We will sell EUR at 123.88 with a stop at 124.45
The material has been provided by InstaForex Company - www.instaforex.com
