FX.co ★ Elliott wave analysis of EUR/JPY for December 16 - 2014

Technical summary:

The correction in red wave ii ended early at 148.23 and never got close to the possible 148.50 - 148.88 area. Red wave iii is now unfolding towards at least 145.23 and likely even lower to 143.39 before red wave iv will be ready to take over. That said, we still have to watch carefully what happens near 144.77 as this could be a potential low for wave c, but only time will show. In the short term, only an unexpected break above 148.23 will indicate, that wave c and (ii) is over and for the next powerful rally higher.

Trading recommendation:

Our break-even stop was hit and we will be neutral as this is the only correction.