FX.co ★ Elliott wave analysis of EUR/JPY for May 27, 2015

Technical summary:

We saw a minor wavefive rally from a low of 133.07, which tells us that the correction in wave (ii) is over and wave (iii) higher towards at least 144.03 and more likely to 150.77 is developing. In the short term, we will ideally see the 61.8% corrective target of blue wave i at 133.62 protecting the downside for a break above minor resistance at 134.11 and more importantly a break above 134.52 confirming wave (iii) higher is developing.

As long as minor resistance at 134.18 is able to protect the upside, we must allow more deeper correction in blue wave ii, but at no point a break below 133.07 can be allowed or this count will be invalidated.

Trading recommendation:

We will buy EUR at 133.50 or upon a break above 134.18 (one order done cancels the other) stop will be placed at 133.00