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18.06.2021 08:58 AM
Elliott wave analysis of EUR/JPY for June 18, 2021

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EUR/JPY is now testing the 23.6% target at 130.82 this should complete wave 4/ for the next impulsive rally in wave 5/ towards 135.42. Hawkish statements from FED yesterday pushed the EUR/USD lower and of course this spilled over to EUR/JPY which was pushed lower too. We however don't see this as other than short-term strength for the USD and once this strength is reversed EUR/JPY should find its footing and start to rally as wave 5/ takes over. A break above 131.43 will indicate that wave 4/ is complete and wave 5/ is taking over.

Trading recommendation:

Buy EUR here at 130.82 or wait for a break above 131.43 to buy for the next rally higher to 135.42. Stops on new long positions needs to be placed below 129.60 to begin with.

Torben Melsted,
Analytical expert of InstaForex
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