Technical Analysis of EUR/JPY for April 7, 2016
General overview for 07/04/2016:
Today, we will take a look at the longer time frame Elliott wave count to determine the context of the current situation and possible target levels for swing traders. The daily time frame shows two possible wave progressions: main and alternative. The difference is in the top of the wave 1 blue placement. After the top at the level of 149.79 had been established, markets sold off impulsively, down to the level of 126.00 ( wave A blue). Then we can see a three-wave upward corrective cycle ( wave A black) and then very long, choppy, and full of whipsaws price action towards the lower levels of 120.00. According to the EWP, this can not be an impulsive wave progression and this is why it is labeled as a triple zig-zag with one leg down missing (wave B black). The projected target for this wave is around the level of 119.09 and if the count is correct, the market should reverse impulsively from it, and a new high should be made.
124.41 - WS3
125.41 - WS2
126.24 - WS1
127.22 - Weekly Pivot
128.05 - WR1
Traders should refrain from trading and wait for another trading setup to occur.
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