FX.co ★ Elliott wave analysis of EUR/JPY for December 20, 2016

Wave summary:

We continue to look for a deeper decline in the wave c of (iv) closer to 119.70 to complete the wave (iv) and set the stage for the next impulsive rally higher towards 126.54 to complete the wave (v) and 3.

Short-term resistance is seen at 122.45, max. 123.01 that should cap the upside for the next move lower towards 120.87 and 119.70.

Trading recommendation:

We are short EUR from 123.50 and will place our stop lower at 123.05. Take profit is set at 120.25.