FX.co ★ Elliott wave analysis of EUR/JPY for February 24 - 2016

Wave summary:

The decline has been stronger than expected and took out the ideal target at 124.00 with force indicating underlying strength. That said, the final part of this decline has shown some real weakness and we still feel that a bottom could be seen anytime now.

To indicate that a bottom could be in place a break above minor resistance at 123.78 will be needed, but if this minor resistance breaks, we should see a correction back to at least 127.41.

Trading recommendation:

Our stop at 123.65 was hit for a small loss. We are looking for a new buying opportunity upon a break above 123.78.