EUR/JPY: technical analysis – August 23, 2012

The EUR/JPY recently broke out of its ascending wedge pattern but the rally has stalled and a pull-back has occurred which could go deeper given the strength of the first leg and reach perhaps to 97.70 where the 50-day MA is situated. After that the wave sequence indicates a strong possibility of an Elliot wave 5 higher re-touching the 99.18 highs to complete the pattern, although its difficult to say whether there will be further gains after that given the weak breakout.

Written by Forex4you