FX.co ★ Elliott wave analysis of EUR/JPY for January 22 - 2015

Technical summary:

The 61.8% corrective target at 135.83 protected the downside to perfection. Now, we should see minor support at 136.24 protect the downside for a break above the top of wave i at 137.64 confirming that wave iii higher to 140.54 is developing. A break below support at 136.24 would arouse concern and indicate a deeper correction from the 137.64 high to the 70.7% corrective target at 135.56.

Trading recommendation:

We are long EUR from 136.88 and we will move our stop higher to 136.20. If you are not long EUR yet, then buy near 136.24 with a stop at 136.20.