FX.co ★ Elliott wave analysis of EUR/JPY for April 4 - 2016

Wave summary:

The corrective rally in wave iv seems to have ended prematurely at 128.22. The break below minor support at 126.94 does suggest this is indeed the case and that the final decline in wave v lower to 117.38 is now developing.

Short term minor resistance is now found at 127.42, which ideally will protect the upside for downside acceleration. However, as we are at the very early start of wave v lower, the first reaction often retraces most of the first wave, which could mean a move closer to 128.22, but not above.

Trading recommendation:

We missed our take profit and our stop at 126.90 has been hit. We will be looking for a selling opportunity at 127.35 with stop placed at 128.25.