FX.co ★ Elliott wave analysis of EUR/JPY for February 10 - 2015

Technical summary:

This cross is trading in a more and more narrow range, which opens the possibility/risk of this consolidation as being both a compressed wave ii or an x-wave. If it's a wave ii, then we soon should see a break below 133.64 and more importantly below 132.54 for a continuation lower towards 125.98. If however, it proves to be an x-wave, then we should see a break above resistance at 135.16 for a continuation of the correction from 130.14 towards 137.64.

Trading recommendation:

We sold EUR at 133.98 and has placed our stop at 135.40.