FX.co ★ Elliott wave analysis of EUR/JPY for April 22 - 2016

Wave summary:

The red wave ii correction turned out to be an expanded flat correction, which tells us to expect an extended rally in red wave iii. This means a rally to at least 127.77 and possibly much higher as red wave iii gathers momentum.

In the short term, we should see support at 123.77 protect the downside for a break above resistance at 124.96 confirming the rally higher to 127.77 and above.

Trading recommendation:

We missed the entry at 123.25, but did instead buy at 124.40 and will place stop at 123.30. If you are not long in EUR yet, then buy upon a break above 124.96 and use the same stop at 123.30 expecting to move it higher shortly.