FX.co ★ Elliott wave analysis of EUR/JPY for May 16 - 2016

Wave summary:

The correction that we looking for in wave [ii] extended lower to the 61.8% corrective target at 122.68 before turning higher in wave [iii]. We will now be looking for a break above 123.81 to confirm that wave [ii] indeed terminated at 122.61 and wave [iii] is moving higher towards at least 125.78.

Now support is seen at 122.91, which ideally will protect the downside for the break above 123.81.

Trading recommendation:

We bought the EUR at 123.10 and placed our stop at 122.60. If you are not long on the EUR yet, then buy above 123.81 and place your stop at 122.90.