FX.co ★ Elliott wave analysis of EUR/JPY for May 21 - 2015

Technical summary:

The correction in wave (ii) is unfolding as expected. In the short term, we will be looking for a break below the minor support at 134.31 confirming a new test and a possible break below the support at 133.91 for a continuation lower to the 137.97 - 133.08 target zone. Once this correction is over, a new strong rally higher to at least the 149.55 top, and possibly much higher in the longer term, will take place.

Trading recommendation:

We are short EUR from 135.27 with stop placed at 134.88. We will place take profit at 133.25.