FX.co ★ Elliott wave analysis of EUR/JPY for September 7 - 2015

Technical summary:

A breakout below important support at 133.27 invalidated the bullish outlook and shifted it to a bearish bias, which implise a much more complicated correction from 141.06. Potentially, the rally from a low of 126.05 could be a part of an even bigger correction from 141.06. A break below the support near 132.45 will charge the direction of an even bigger correction which is unfolding.

In the short term, we expect the former support at 133.27 to act as resistance for a new downside pressure towards 132.45 and possibly even below.

Trading recommendation:

With a high of 133.32 being reached this morning, we have to sell EUR at 133.25, our stop is places at 134.00