FX.co ★ Elliott wave analysis of EUR/JPY for May 9 - 2016

Wave summary:

The price spiked lower on Friday to a low of 121.46 but was immediately rejected. This could be what we have been waiting for to secure the bottom for a new long-term rally back to 141.06 and higher.

In the short term, we would like to see minor support at 121.87 protect the downside for a break above minor resistance at 122.55 and, more importantly, a break above resistance at 123.53 confirming the bottom for a rally back to 126.47 and higher.

Trading recommendation:

Buy a break above 122.55 and place your stop at 121.40.