FX.co ★ Elliott wave analysis of EUR/JPY for February 20 - 2015

Technical summary:

We still favor a final rally towards 137.65 as long as support at 133.92 protects the downside. However, once resistance at 137.65 has been tested or an early break below 133.92 has been seen, we should look for the final decline in wave C of the expanded flat correction, that has been building since late December 2013. This final decline should ideally reach 125.98 before a new impulsive rally should be expected.

Trading recommendation:

We will sell EUR at 137.55 or upon a break below 133.90.