FX.co ★ Elliott wave analysis of EUR/JPY for August 16, 2016

Wave summary:

Have we just seen one of those nasty deep wave two corrections here? If YES! Then a break above minor resistance at 113.30 and more importantly a break above 114.03 should be seen soon for upside acceleration towards 118.47 and 122.00.

Only a clear break below support at 112.28 and more importantly below 110.79 will invalidate the possible bullish outlook and call for a decline to 106.03 before higher.

Trading recommendation:

Our stop at 112.60 was hit. We will only re-buy EUR if resistance at 113.30 is broken with stop placed at 112.25.