FX.co ★ Elliott wave analysis of EUR/JPY for May 4 - 2015

Technical summary:

The extended rally in red wave iii seems to have peaked between the 261.8% and the 300% extension target of red wave i. We should now be looking for red wave iv. As red wave ii was a simple zig-zag correction, we should expect a shallow but complex correction in red wave iv. A correction that likely will not move lower than the 132.95 - 133.45 area. Once the correction in red wave iv is over, a new rally higher towards 137.40 should be expected to end the first impulsive rally of the 126.02 low.

Trading recommendations:

We are long EUR from 128.85 and will move stop higher to 132.75. If you are not long EUR yet, then but EUR near 133.45 with the same stop at 132.75.