FX.co ★ Elliott wave analysis of EUR/JPY for May 10, 2016

Wave summary:

With the break above resistance at 123.53 we have seen another strong indication that a firm bottom is in place with the 121.46 low. In the short term, we will now be looking for support near 123.21 for the next rally higher towards 124.66 and the April high at 126.47. A break above the later will finally confirm that the long-term correction from 149.55 has come to an end and a new impulsive rally that ultimately will break back above the 149.55 high will be seen.

Trading recommendation:

We are long EUR from 122.55 and will place our stop at break-even. If you are not long EUR yet, then buy near 123.21 and use the same stop at 122.55.