FX.co ★ Elliott wave analysis of EUR/JPY for December 24 - 2014

Technical Summary:

We are still looking for a rally slightly higher to 148.23 to end wave x and then we should see the next decline towards 142.06. If, however, the resistance at 148.23 is broken the corrective pattern changes to a flat correction, that would call for a rally to 149.78 before we should expect the next move lower. We are in a small wave (ii) correction and once this correction is over, new highs above 149.78 should be seen.

Trading Recommendation:

We long EUR from 147.05 with stop placed at 145.90. We will move stop higher to 146.40 once minor resistance at 147.15 is broken, and keep our take profit at 148.05