Daily technical analysis of EUR/JPY By INSTAFOREX

Wave summary:
The corrective decline from 124.09 in wave (iv) is now in its final stages and could complete any time now. As long as minor resistance at 118.80 is able to cap the upside, we could still see a final spike to the downside closer to the 116.83 -116.99 area. From here or upon a direct break above 118.80 wave (v) higher to above 124.09 should be seen.

Trading recommendation:
We will buy EUR at 117.05 or upon a break above 118.80.

tq tuan tanah

Wave summary:
We continue to look for a final decline into the 116.83 - 116.99 area from where a new impulsive rally in wave (v) is expected. A break above minor resistance seen at 118.43 and, more importantly, a break above resistance at 118.80 will confirm that wave (iv) has completed and wave (v) to above 124.09 is unfolding.

Trading recommendation:
We will buy EUR at 117.05 or upon a break above 118.43.

Wave summary:
We are finally seeing the expected decline to the equality target between wave a and c at 116.83. With this test, the corrective decline from 124.09 finally looks complete and a new impulsive rally is ready to start. The first good indication that a corrective low is in place will be a break above minor resistance seen at 118.07, while a break above resistance at 118.80 will confirm that wave (iv) has completed and wave (v) to above 124.09 is unfolding.

Trading recommendation:
We are long EUR from 117.05 with stop placed at 116.05. If you are not long EUR yet, then buy a break above 118.07 and start by using the same stop.

Wave summary:
We continue to look for minor resistance at 116.55 to be able to cap the upside for the final decline closer to the 115.10 - 115.32 area to complete wave (iv) and set the stage for the next impulsive rally to above 124.09. Only a direct break above minor resistance at 116.55 will indicate that wave (iv) already has completed, while a break above resistance at 117.47 is needed to confirm that wave (iv) has completed and wave (v) to above 124.09 is unfolding.

Trading recommendation:
We will buy EUR at 115.25 or upon a break above 117.50.

Wave summary:
EUR/JPY has already broken above short-term important resistance at 116.55 and also the resistance line from 122.88 confirming that an important low was seen with the test of 114.82 and a new strong rally to above 122.88 and 124.09 should be expected in the coming weeks/months.
Short term, a break below minor support seen at 116.45 will indicate a deeper correction towards the 115.65 - 115.90 area before strongly higher again. If, however minor support at 116.45 is able to protect the downside, we could see a direct rally higher to 117.99 and possibly even closer to 119.91 before a more substantial correction should be expected.

Trading recommendation:
We are long EUR from 115.25 with stop placed at 114.75. If you are not long EUR yet, the buy near 116.00 if possible and use the same stop. Otherwise buy a break above 116.98 and use a stop at 116.40.

Wave summary:
Minor support at 116.45 protected the downside, which called for a direct extension higher to 117.99 (the peak of wave iii/ has been seen at 117.82). and a correction in wave iv/ is now unfolding toward 116.52 before higher again towards 119.35 to complete wave i.
It's possible to count the rally from 114.82 as a complete five-wave rally at 117.82 and if this is the case, we should still look for a slightly deeper correction, that will overlap with the top of wave i/ at 115.88 closer to 115.82 before turning higher again.

Trading recommendation:
We are long EUR from 115.25 with a stop placed at 114.75. If you are not long EUR yet, then buy near 116.55 and start by using the same stop expecting to move it higher soon.

Wave summary:
EUR/JPY is already testing the extension target at 121.92 and the rally from 116.42 does not show signs of exhaustion yet. So as long as minor support seen at 121.22 is able to protect the downside, we should look for the possibility of even more upside towards 122.41 and maybe even closer to 123.32 before wave iii peaks.Longer term, a rally to above 124.09 remains expected here.

Trading recommendation:
We are long EUR from 115.25 and will move our stop higher to 121.15. Wait to buy the next correction.

Wave summary:
We have seen a peak 121.98, but the question is, whether this peak of completed wave iii for more upside closer to 123.42 to complete wave A or have wave A already completed with the high seen at 121.98? At this point, it really does not matter, as both scenarios call for a corrective decline towards 119.85 before the next rally higher should be expected.
We do favor the scenario that sees the peak at 121.98 as wave iii and the current corrective decline as wave iv to be followed higher by wave v, but for now look for a corrective decline to 119.85 and the higher.

Trading recommendation:
Our stop at 121.15 was hit for a 590 pips profit. We will buy EUR again at 120.00.

Mantap boss