FX.co ★ Elliott wave analysis of EUR/JPY for August 5, 2015

Technical summary:

We saw a break below important support at 135.49, which has changed the short-term count. The consolidation, which has been taking place since late July, is best described as a small triangle. This tells us that a b-wave and a c-wave can be still moving lower to 130.04. A break below the low of red wave d at 134.28 will confirm this outlook.

The short-term resistance will be found at 135.49 and at 136.17 again, which needs to protect the upside.

Trading recommendation:

Our stop at 135.40 was hit for a nice profit. We will sell EUR at 135.40 or upon a break below 135.00 with stop placed at 136.20 and take profit sets at 130.25