FX.co ★ Elliott wave analysis of EUR/JPY for January 15, 2016

Wave summary:

The triangle consolidation we have been looking for continues to unfold just as we expected. Still more small squiggles are needed inside the triangle to finish wave d and e before a downside thrust will be seen.

It will take an unexpected break above 129.08 to invalidate the triangle scenario, but even if a break above 129.08 occurs, we expect the potential towards the upside to be limited to 129.48.

Trading recommendation:

We are short EUR from 130.95 with stop placed at 129.15. If you are not short EUR yet, then sell near 128.61 and use the same stop at 129.15.