FX.co ★ Elliott wave analysis of EUR/JPY for July 1 - 2016

Wave Summary:

Red wave ii has taken more time to go up than we first expected, but a break below the minor support line near 113.65 and a break below support at 113.31 confirm that red wave iii is developing for a decline towards 109.40 before a shallow flat correction expected in red wave iv.

The next major downside target we are looking for is seen at 108.00 as the ideal target for wave iii.

Trading recommendation:

Sell a break below 113.65 with stop placed at 114.80 and take profit at 108.25.