EUR/JPY Elliott Wave Count for January 27, 2012

Market Overview
The EUR/JPY pair started this week the motion within the big bull movement. Yesterday the price reached the resistance level 102.20 and started pushing the price back to level 101.50. Today we observed the price passing through the 50EMA at the 101.40 level and its further decline.

At the moment the price is expected to break 100EMA support level. We suppose that the price will drop lower than the 100.00 level in next few days. The news concerning the negative financial situation in the Europe influenced the exchange rate of the pair.

Support and Resistance
(S3)100.92 (S2)101.22 (S1)101.41 (PP)101.71 (R1)102.01 (R2)102.20 (R3)102.50

Important News
(EUR) German Import Prices m/m
(EUR) M3 Money Supply y/y
(EUR) Private Loans y/y
(EUR) ECB President Draghi Speaks

Elliott Wave Analysis for EUR/JPY
The EUR/JPY pair completed the wave 5 in corrective A wave at level 102.19 and started next 3-wave correction within the wave B. According to our wave rules and concerning that the wave B will be completed around 50% retrace of the wave A we can define the prospective targets with Fibonacci Retracement (97.03-102.19): 50% retrace at 99.60.

eurjpy270112 EUR/JPY Elliott Wave Count for January 27, 2012

Trading Forecast

Taking into account Elliott Wave Rules we can expect that today the trend will go downwards. Thus, it is recommended to open Short positions at level 100.70 with Stop Loss at level 101.20 and Take Profit at level 99.60.

The material has been provided by Instaforex Company – instaforex.com

UltimaForex.com

Your free tools to make money from forex trading!