FX.co ★ Elliott wave analysis of EUR/JPY for March 5 - 2015

Technical summary:

We have seen a nice and strong decline after the break below support at 133.39 and more importantl break below support at 132.52 confirming that the correction in wave (iv) ended at 135.91 and wave (v) is developing lower towards 125.98 . Short term, we expect resistance at 133.20 to protect the upside for the next decline lower towards the 161.8% extension target at 131.00 and possibly even lower.

Trading recommendation:

We are short EUR from 133.90 and will lower our stop to break-even. If you are not short EUR yet, then sell near 133.20 with the same stop at 133.90.