FX.co ★ Elliott wave analysis of EUR/JPY for March 23 - 2015

Technical summary:

The failure to break below support at 128.24 questioned whether more downside would be seen. We have labeled the rally of the 126.87 as a possible complex correction, but the size of this rally already seems to be of a larger proportion that all of the decline from 135.29, which could mean that we are looking at a new uptrend. If a new uptrend is unfolding, then we should see a firm break above 133.18 for a move above 136.69 before a larger correction can be expected. However, if this rally fails before resistance at 131.72, the rally of a low of 126.87 is likely to be a complex red wave iv correction.

Trading recommendation:

We are long EUR from 130.05 and will place stop at 129.50.