Elliott Wave Analysis on FTSE 100 and EURJPY

FTSE 100

As you all might noticed risk-on sentiment has resumed this week with stock markets moving higher in an impulsive manner. However, there are some pullbacks at the moment but, most-likely, only part within an uptrend. At the same time we are looking at some XXX/JPY pairs that are tracking global indexes, so more gains on equity market mean lower Japanese yen.

The first chart we will look today is FTSE100 which shows a very nice, classic impulsive wave structure in progress. These are five wave patterns, structured by two contra-trend waves two and four. What really matters about identifying a corrective set-back is a slow and overlapping personality, which is clearly visible in this current retracement down from 6650. We see it as wave four that can be looking for a base later today around 6570/6580 area. Invalidation level is near 6530.

FTSE, 15Min

EURJPY

So if we are correct on FTSE above, then USDJPY and EURJPY can be in the similar temporary retracement. EURJPY is looking very nice at the moment, going lower into wave 4 that has room for lower levels, down to around 114.25 where price is expected to turn up for a fifth wave.

EURJPY, 30Min

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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