FX.co ★ Elliott wave analysis of EUR/JPY for December 11 - 2014

Technical summary:

The correction from 149.13 continues to unfold as expected. Wave c of the expanded flat should continue lower to 144.79 as the first target. That said, wave c is allowed to extend and therefore, we could see a move lower to 143.40 and maybe even 141.64 where this correction would have corrected 50% of the rally from 134.14 to 149.13. Short-term resistance at 148.25 should protect the upside for the continuation lower to 144.79.

Trading recommendation:

We are short in EUR from 147.97 and will move our stop lower to 148.35. If you are not short in EUR yet, then sell near 147.75 with the same stop at 148.35.