FX.co ★ Elliott wave analysis of EUR/JPY for June 21, 2016

Wave summary:

The ongoing rally of the 115.46 low continues to display impulsive characters indicating more upside to come. The deep correction from 119.14 to 117.30 indicates that wave iii will become an extended wave. Therefore we shall be looking for a rally in wave iii towards at least 122.14 and likely even higher towards 123.76 before wave iv will be ready to take over.

Short-term support is seen at 117.78 and will ideal protect the downside for the next rally above 119.14 towards 122.14, but only an unexpected break below 117.30 will be of concern.

Trading recommendation:

We are long EUR from 117.50 and will move the stop higher to 117.25. If you are not long EUR yet, then buy near 117.78 or upon a break above 118.65 and use the same stop at 117.25