FX.co ★ Elliott wave analysis of EUR/JPY for December 23 - 2015

Wave summary:

We have most likely seen wave [i] of c end at 132.78 and is currently in the later part of wave [ii], which is expected to terminate near 132.10 for the next impulsive rally closer to 134.91 in wave [iii] before the next consolidation is expected in wave [iv].

As we are looking for a second wave correction, we will have to remember that they often become very deep and correct most of the first wave, so even if we see a break below 132.10 that doesn't alter our expectation of a continuation higher towards 135.34

Trading recommendation:

We are long EUR from 131.95 and will lift our stop to break-even.