FX.co ★ Elliott wave analysis of EUR/JPY for January 18, 2016

Wave summary:

The triangle continues to unfold as we expected. In the short term, we should see support at 127.28 protecting the downside for another small rally towards 128.50 before the thrust downside takes us lower to 126.05 and 125.45.

In the long term, I would be looking for even more downside pressure towards 123.57 and the next major downside target.

Trading recommendation:

We are short EUR from 130.95 with stop placed at 129.50. If you are not short yet, then sell near 128.50 or upon a break below support at 127.28 and place your stop order at 129.50.