Elliott Wave Analysis of EUR/JPY for April 18 - 2016
On Friday, we saw a failure to break clearly below 122.54 indicating that a fifth wave failure has been seen for red wave [v] and red wave [iii]. However, we expected resistance at 123.66 would protect the upside for another run towards the downside and a break below 122.54. We saw a corrective high at 123.57 for red wave iv and today, we have seen a clear break below the 122.54 low. With the first support at 121.75 already broken, we should expect more downside towards the next support at 120.44.
We are short in EUR from 123.76 and will move our stop lower to 122.90 and will place our take profit at 120.50.
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