02.06.201507:14 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for June 2 - 2015

Technical summary:

We saw an anticipated correction in blue wave iv yesterday. It moved a little lower than we expected and tested support at 135.10 before moving higher in blue wave v. We have already seen a new high for the rally of the 133.07 low. Now, we can count five waves in the first small impulsive rally in wave (iii). We would like to see blue wave v moving higher to just above 136.96 to end red wave i and set the stage for a correction in red wave ii to 135.10 as the first downside target.

In the longer term, we are looking for a much larger rally with 144.03 as the first upside target, where wave (iii) will be equal in length to wave (i). However, as wave (ii) showed an expanded flat correction, we should expect extension in wave (iii). That would call for a continuation higher to 150.77 as the first extension target, where wave (iii) will be 161.8% of the length of wave (i).

Trading recommendation:

Our stop at 135.25 was hit and we booked a nice profit. We will look for a new EUR buying opportunity near 133.25.