FX.co ★ Elliott wave analysis of EUR/JPY for October 29, 2015

Wave summary:

If we see a weekly close below 132.17, we can expect a breakout below the support-line at 94.12 and a return to 126.05 and lower to 119.90. Looking at the shorter time frame, a decline to 130.90 is in the cards to end red wave 1 and set the stage for a more substantial correction back to the area of 133.55 - 133.92 in red wave 2. That said we should be aware of the risk of an accelerating decline to 126.05 and lower.

Trading recommendation:

We took profit on our short position at 133.55. We will look for a new shorting opportunity in the coming sessions.