FX.co ★ Elliott wave analysis of EUR/JPY for December 30, 2015

Wave summary:

Important short-term support at 131.00 continues to protect the downside keeping our preferred count alive for a final rally higher towards 135.97 before the correction from 129.62 comes to an end and a new impulsive decline below 126.05 should be seen.

Only a direct breakout below important support at 131.00 will indicate that wave (ii) ended early at 134.59 and wave (iii) lower is already unfolding.

Trading recommendation:

As wave [ii] became slightly deeper than first expected our stop at 131.40 was hit, but we will re-buy EUR here at 131.70 with a stop and revers at 130.95.