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

Technical summary:

It's "Make it or break it" time. Support at 134.13 needs to protect the downside for a break above minor resistance at 136.87 and more importantly resistance at 138.79 confirming that a bottom is in place and a new impulsive rally is developing. If however, support at 134.13 is broken, then our working count will be proven wrong and a revaluation of the longer term count will be needed. This new count, if necessary, will call for a continuation lower towards 128.38.

Trading recommendation:

We will only buy a break above minor resistance at 136.87, with a stop+reverse at 134.10.