FX.co ★ Elliott wave analysis of EUR/JPY for February 8, 2016

Wave summary:

We continue to look for a slightly deeper correction towards 128.55 to end wave ii and set the stage for a strong rally in wave iii higher through resistance at 132.32 for a rally towards at least 138.30 and higher to 141.04.

In the short term, we expect minor resistance at 131.02 to protect the upside for a breakout below minor support at 130.04 calling for the expected corrective decline to 128.55.

Only a direct breakout above 131.66 will indicate that the corrective decline is already over and the rally towards 138.31 is developing.

Trading recommendation:

We are looking for a EUR buying opportunity at 128.60 or upon a breakout above 131.66.