FX.co ★ Elliott wave analysis of EUR/JPY for December 8 - 2014

Technical summary:

The break above 149.13 tells us, that the ongoing correction only can be an expanded flat correction. We have seen wave a from 149.13 down to 145.58 and is currently in wave b, which should make it to the 150.10 - 150.48 area before wave c lower takes over. That wave (ii) becomes an expanded flat telling us what can be expected from wave (iii) once it will be ready to move higher again. After an expanded flat correction, we should always expect an extended wave, but first we need wave b and c to end wave (ii), so we should stay focused on those two waves. In the short term, it will take a break below 148.49 and more importantly a break below 148.11 to confirm that wave b is over and wave c lower is developing.

Trading recommendation:

We will sell EUR at 150.40 with a stop place at 150.65.