FX.co ★ Elliott wave analysis of EUR/JPY for June 4 - 2015

Technical summary:

A strong wave (iii) rally of a low at 133.07 low just keeps powering ahead and is currently testing the base-channel resistance line. We do expect this resistance line to be broken for acceleration higher towards at least 144.03, but we are not sure that the first test will be successful and will look for a small correction towards 138.03 and maybe slightly lower to the inverse S/H/S neckline at 137.00 before the next strong rally higher.

In the short term, a break below 139.76 indicates that minor correction is unfolding as anticipated. As tempting as it might be, don't sell EUR ahead of the correction. We are in wave three and correction tends to be small or even sub-normal.

Trading recommendation:

We are looking for a EUR-buying opportunity. We will buy EUR at 138.15.