FX.co ★ Elliott wave analysis of EUR/JPY for August 19 - 2016

Wave summary:

The resistance-line from 118.47 has clearly been broken, but as no upside acceleration has been seen, we stay only cautious bullish and wait for a clear break above resistance at 114.03 that should release the energy for upside acceleration towards 118.47 and 122.00 as the next important upside targets.

That said, we have to be aware of the possibility of renewed downside pressure towards 112.28 and maybe even closer to 110.79, but not below here, as long as resistance at 114.03 holds firm.

Trading recommendation:

We will only buy in case of a break above 114.03 with stop placed at 112.20.