FX.co ★ Elliott wave analysis of EUR/JPY for August 2 - 2016

Wave summary:

Our preferred count shows that the corrective low of wave [ii] was seen at 113.85 and a new strong impulsive rally higher towards 126.00 is about to take off. Short term a break above minor resistance at 115.31 will be the first strong indication that wave [ii] is complete and wave [iii] is developing, while a break above 116.92 will confirm the rally higher towards 126.00 in wave [iii].

As long as minor resistance at 115.31 is able to protect the upside, we need to allow for a move slightly lower in wave [ii], but do not expect more that 113.70.

Trading recommendation:

We are long EUR from 113.85 with stop placed at 113.20. If you are not long EUR yet, then buy near 113.70 or upon a break above 115.31 and use the same stop at 113.20