FX.co ★ Elliott wave analysis of EUR/JPY for August 23, 2016

Wave summary:

We remain locked inside the 112.28 - 114.03 range. The pair is currently trading within an even more narrow range. We remain slightly bullish as long as support at 112.28 is able to protect the downside, for a break above 114.03 that will call for much more upside.

That said, we do accept the possibility of more downside pressure as long as resistance at 114.03 stays untouched, but we do think that the downside potential remains limited from here.

Trading recommendation:

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