FX.co ★ Elliott wave analysis of EUR/JPY for May 18 - 2015

Technical summary:

The rally continues to unfold as expected. Now we have a wave five rally from a low of 126.02 and ideally this final rally higher will stop near 137.54 before a larger correction of the entire rally of 126.02 is to be seen.

In the short term, support at 135.29 is ideally likely to protect the downside for the rally closer to 137.54. However, a break below support at 135.29 is expected be the first good indication that the first impulsive rally of 126.02 is over and a correction of the entire rally of this rally towards 133.08 should be seen.

Trading recommendation:

We missed our buying opportunity around 133.15 and as we are in the final stages of the rally from 126.02, we will be neutral for now.