Elliott Wave Analysis of EUR/JPY for June 1 - 2016
Despite an unexpected large decline yesterday, we will let the bullish view have the benefit, as long as the low at 121.46 is able to protect the downside. If our count is correct then this wave [ii] is allowed to correct 100% of wave [i] without invalidating the count. However, wave [ii] can never even break below the starting point of wave [ii] and if it does, we know the count is incorrect and a new count will be necessary.
A short-term break above minor resistance at 123.32 will be needed to confirm that wave [ii] is in place for more upside pressure towards 124.19 and 124.65 on the way towards 126.47.
Important support at 121.46 should be broken to move lower towards the 118.75 - 119.15 area before a possible bottom is expected.
Our break-even stop was hit, and we will re-buy the EUR here at 122.37 and place our stop at 121.45. The more conservative approach will be to buy a break above 123.32 and use the same stop at 121.45.