FX.co ★ Elliott wave analysis of EUR/JPY for November 25, 2016

Wave summary

Red wave iii most likely peaked with the test of 120.16. A correction towards at least 118.64 and likely even closer to 117.69 should now be expected in red wave iv before red wave v takes over for the next rally higher towards 122.00. Short term, a break below 119.15 confirms that red wave iii is complete and that red wave iv now is unfolding for a corrective decline.

Trading recommendation:

We are long EUR from 115.04 and will move our stop higher to 119.10. We will re-buy EUR at 117.75 and place the stop at 117.25.