FX.co ★ Elliott wave analysis of EUR/JPY for October 7, 2015

Technical summary:

It should be just a matter of time before resistance at 135.71 gets broken, which confirms a continuation higher towards 138.00 as the next minor upside target. Looking at a larger picture, a break above 135.71 and more importantly above 138.00 will confirm the rally to 141.00.

To preserve a bullish outlook, support at 134.40 will ideally protect the downside, but only an unexpected breakout below support at 133.44 will invalidate the bullish outlook.

Trading recommendation:

We are long EUR from 135.10 with stop placed at 133.45. If you are not long EUR yet, buy near 134.40 or upon a break above 135.71 and use the same stop at 133.45.