FX.co ★ Elliott wave analysis of EUR/JPY for February 25 - 2015

Technical summary:

We have been locked inside a range between 133.51 and 135.91 the last couple of days. The question of course is whether wave (iv) ended at 136.69 or one more rally higher towards 137.65 is needed? As long as support at 133.51 protects the downside, we will let bulls have the benefit of the doubt. That said, only a break above 135.91 will confirm the rally towards 137.65 to end wave (iv). If however, support at 133.51 is broken, the the count will shift immediately to a finished wave (iv) at 136.69 and wave (v) lower towards 125.98 is developing.

Trading recommendations:

We are short EUR from 133.90 and will keep our stop at 136.00. EUR should only be sold near 137.65 or upon a break below support at 133.51.