FX.co ★ Elliott wave analysis of EUR/JPY on December 30, 2022

EUR/JPY continues to point lower toward the origin of the ending diagonal at 133.44. From the May 2020 low at 114.42, we have seen a five-wave rally to 148.40 and wave 5 of I turned into an ending diagonal. Once they complete, the target for the following correction is back to the origin of the ending diagonal, which in this case is 133.44. This is why we are looking for a corrective target. It doesn't mean that the correction can't be deeper than the 133.44 target, but that is the first logical target to look for and that's what we are doing.