FX.co ★ Elliott wave analysis of EUR/JPY for February 29 - 2016

Wave summary:

The correction in wave b towards at least 127.41 seems to be well underway.

Short term, we expect minor support at 123.38 to protect the downside for the next upside pressure through 125.01 for a continuation higher to 125.56 and 127.41.

A break below support at 123.38 will call for a retest of the 122.43 low.

As we have entered a period of correction, the moves will be more erratic and we will have to be more flexible.

Trading recommendation:

We are long EUR from 123.85 with stop placed at 123.35. If you are not long EUR yet, then buy near 123.65 and use the same stop at 123.35.