Trade Idea: EUR/JPY – Buy At 136.20
Written by ActionForex.com | Aug 13 09 09:42 GMT |
EUR/JPY – 137.50
Recent wave: Wave (1) of (iii) ended 138.72 and wave (2) ended at 134.10
Trend: Up
Our trading strategy: Buy at 136.20, Target: 138.20, Stop: 135.55
As euro’s rebound from 134.10 has gathered momentum, suggesting the wave (2) correction from 138.72 has possibly ended there and upside bias is now seen for further gain to 138.30/40 but break of recent high at 138.72 is needed to confirm upmove has resumed for retest of chart resistance at 139.26, then towards 140.00.
To recap our preferred count is that wave (i) of 3 from 127.00 has ended at 136.11 and correction in wave (ii) has also ended at 132.80, hence wave (iii) of 3 has commenced with wave (1) ended at 138.71 (this wave (1) is sub-divided into i at 134.39, ii at 132.99, iii at 137.96, iv at 136.53 and wave v at 138.71). Wave (2) has possibly ended at 134.10 and break of 138.25/30 would confirm and bring retest of 138.72, then 139.26.
In view of this bullish count, we are turning long again on pullback, only break of overnight support at 135.46 would abort and prolong choppy trading and risk fall to 135.00 but support at 134.10 should hold.
Our larger degree count remains that wave 1 from 112.08 ended at 139.26 and wave 2 is a 3-legged move (as indicated in the attached chart) with a: 131.41, b: 136.90 and c: 127.00. Under this count, the wave 3 has commenced from 127.00 with wave (i) and (ii) of 3 ended at 136.11 and 132.80 respectively.
On the bigger picture, we are treating the rally to 169.97 as end of wave A, then followed by a selloff in wave B (abc-x-abc) at 112.08. The wave C from there should unfolding as an impulse with wave 1 of C ended at 139.26, then the 3-legged wave 2 has ended at 127.00 and wave 3 should bring retest of 139.26, then towards 142.00.
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Comments
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