FX.co ★ Elliott wave analysis of EUR/JPY for August 3, 2016

Wave summary:

The corrective decline from 118.40 continues to press lower and is currently testing the support line from the 109.48 low. This support should ideally be able to protect the downside for a break above minor resistance at 114.81 being the first strong indication that the corrective decline is complete and a new impulsive rally to above 118.40 is unfolding.

If, however support near 112.95 gives away, that will be of concern and question whether the rally from 109.48 is only a three-wave corrective rally and low at 109.48 will be revisited.

Trading recommendation:

Our stop at 113.20 was hit and we will wait for a break above minor resistance at 114.81 before buying again.