Elliott Wave Analysis of EUR/JPY for May 18 - 2016
With a low at 122.93 or exactly the 78.6% correction of red wave [i], we expect red wave [ii] will be in place for the next impulsive rally above minor resistance at 123.55 and, more importantly, above resistance at 124.18 confirming a continuation higher towards 125.78 and above.
The low at 122.93 should ideally protect the downside, but at no point can a break below 122.60 be allowed as that would force a recount of the correction in wave [ii].
Stay long with stop placed at 122.90. If you are not long in EUR yet, then buy a break above 123.55 and use the same stop at 122.90.