FX.co ★ Elliott wave analysis of EUR/JPY for January 14, 2022

EUR/JPY is locked inside a narrow trading-range between 130.02 - 131.12. This should eventually conclude with a break towards the upside and a rally towards 135.04 as our first target.

Short-term the ongoing consolidation likely needs a little more downside closer to support at 130.02 before tuning higher again to make a new peak above the former peak at 134.04. Once the peak at 134.04 has been exceeded, all requirements to wave 3 will have been fulfilled and a top could be seen anytime. For now our focus should remain towards the upside and a final rally closer to 135.04 and maybe even towards 139.39. Only time will tell if there is energy enough in the rally from 119.57 to get to 139.39 to complete wave 3.