FX.co ★ Elliott wave analysis of EUR/JPY for April 11 - 2016

Wave summary:

We continue to look for a decline to below 122.54 to end red wave iii. Ideally, the low of red wave iii will be seen near 120.98 and will set the stage for a consolidation in red wave iv before the final decline in red wave v towards 117.37 where a major new impulsive rally is expected.

Short-term minor resistance is seen at 123.53, this minor resistance should be able to protect the upside for a break below minor support at 122.54 for a decline closer to 120.98. If, however, minor resistance at 123.53 is broken, that would call for a more complex correction in red wave [iv] towards 124.50 before red wave [v] of red wave iii will be ready to take over.

Trading recommendation:

We are short in EUR from 127.35 with stop placed at 124.00 and we will take profit at 121.05.