Elliott wave analysis of EUR/JPY for July 27 - 2015 Market Analysis Review

Technical summary:

We continue to look higher for a break above minor resistance at 136.44 and more importantly a break above resistance at 137.80 as long as support at 134.83 protects the downside. That said, we are clearly aware of the risk of a break below minor support at 134.83 as long as minor resistance at 136.44 is able to protect the upside. This tug-of-war, we think, is likely to be won if bulls call for a test of important resistance at 137.80 and call for a new test of the 141.06 higher on the way higher to 144.03.

If however, resistance at 134.83 gets broken, bears will gain the upper hand for a test of important support at 133.27 and below here will definitely shift the long-term count from bullish to bearish call for a new test of 126.05 on the way lower.

Trading recommendation:

We are long EUR from 134.07 with our stop placed at 134.80. If you are not long EUR yet, then buy a break above 136.44 and use a stop at 135.40.

The material has been provided by InstaForex Company - www.instaforex.com

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