FX.co ★ Elliott wave analysis of EUR/JPY for January 13 - 2015

Technical summary:

With the break below support at 140.12, wave c of y has extended beyond what we initially expected and could decline lower towards 139.22 and maybe even lower to the 70.7% corrective target at 138.72 before the correction from 149.84 finally is over. That said a break above minor resistance at 140.88 will be the first indication that a bottom is in place, while a break above resistance at 141.73 is needed to confirm the bottom and renewed strength towards 145.35 and above 149.84 longer term.

Trading recommendation:

Our stop at 139.60 was hit for a small loss. We will buy EUR again at 138.85 or upon a break above 140.88.