FX.co ★ Elliott wave analysis of EUR/JPY for February 9 - 2015

Technical summary:

The big question is, whether wave (iv) ended at 135.36 or a more complex correction is unfolding? As long as the high at 135.36 protects the upside, we will give bears the benefit of the doubt and look for a break below support at 134.00 and more importantly a break below support at 132.52 confirming the impulsive decline towards 125.98 to end wave C of the expanded flat correction. That said, the risk of course is a break above 135.36, that will call for a more complex correction in wave (iv) towards 137.64 before wave (iv) finally is over and wave (v) lower will be seen.

Trading recommendation:

We will sell EUR upon a break below 134.00, with stop placed at 135.40.