FX.co ★ Elliott wave analysis of EUR/JPY for July 7, 2016

The expected decline towards 108.16 is unfolding nicely. Short term, we expect minor resistance at 112.50 will protect the upside for a break below minor support at 110.92 calling for the next part of the decline towards 108.16.

Once the 108.16 target has been tested a new corrective rally is expected before the final decline to the ideal long term corrective target at 106.03.

Trading recommendation:

Stay short with stop placed at 112.75 securing a porfit no matter what happens. If you are not short EUR yet, then sell near 112.50 using the same stop. Place take profit at 108.25.