FX.co ★ Elliott wave analysis of EUR/JPY for February 6 - 2015

Technical summary:

Did wave (iv) end at 135.36 and is a new impulsive decline towards 125.98 developing? As long as 135.36 protects the upside, we will give the benefit of the doubt to bears, but a break above 135.36 with just one pip indicates that a more complex correction is unfolding. In the short term, we would like to see a break below minor support at 133.87 as the first good indication that the bearish case is correct, while a break below support at 132.52 is needed to confirm and support our bearish count.

Trading recommendations:

Our stop at 133.55 was hit for a nice little profit. We will sell EUR again at 137.70 with a stop at 135.40