FX.co ★ Elliott wave analysis of EUR/JPY for August 19 - 2015

Technical summary:

Red wave iv found support right at the inverse S/H/S neckline, but should stay above important support at 136.49 (the top of red wave i) for the next impulsive rally higher to 139.41 as the ideal target for red wave v and wave iii.

In the short term, we will be looking for a break above minor resistance at 137.90 as the first strong indication that red wave v is unfolding for a rally towards 139.46.

Trading recommendation:

We bought EUR at 137.45 with stop placed at 136.45. If you are not long EUR yet, then buy a during break above 137.39 with the same stop at 136.45.