EUR/JPY – 125.71
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:
Bought art 123.80, met target at 125.30
Position: – Long at 123.80
Target: – 125.30
Stop: –
New strategy :
Buy at 125.00, Target: 127.00, Stop: 124.40
Position: –
Target:Â –
Stop:-
Current anticipated rally confirms our bullish view (our long position entered at 123.80 met target at 125.30 with 150 points profit), this move adds credence to our view that early upmove has resumed and may extend headway to 126.40-50, then towards 127.00, however, near term overbought condition should prevent sharp move beyond latter level and reckon 127.50-60 would hold from here, bring retreat later.Â
In view of this, we are looking to reinstate long on pullback as 125.00 should limit downside. Below previous resistance at 124.65 would defer and risk correction towards 124.00-10 but only break of indicated support at 123.66 would signal top is formed instead, bring correction to 123.00 later.
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).
