FX.co ★ Elliott wave analysis of EUR/JPY for May 1 - 2015

Technical summary:

The rally from the long-term important low at 126.02 is unfolding as a textbook impulsive rally. Yes, it did start up with an difficult to read leading diagonal, but then we rather quickly nailed this formation and then the rest has be fairly straight forward. We are currently testing the 261.8% extension target of red wave i. So is red wave iii in place? We don't think so and will be looking for a continuation higher to 135.70 and maybe even higher to 137.40 before red wave iii is in place.

Short-term support is found at 133.72 and again at 132.54.

Trading recommendation:

We are long EUR from 128.85 and will raise our stop to 132.45. If you are not long EUR yet, then buy near 133.72 with the same stop at 132.45.