FX.co ★ Elliott wave analysis of EUR/JPY for August 22 - 2016

Wave summary:

Nothing new to add here.

We remain cautiously bullish for a break above 114.03 confirming our bullish count, that a long term corrective bottom was found at 109.48 and a new impulsive rally is building for much more upside. That said, we do acknowledged the possibility of a deeper corrective move closer to 110.80 but not below here. It is not our preferred outlook, but at this point we need to stay flexible.

Trading recommendation:

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