FX.co ★ Elliott wave analysis of EUR/JPY for December 21, 2016

Wave summary:

As long as minor resistance at 123.01 is able to cap the upside, we will be looking for more downside pressure toward 119.70 to complete the correction in wave (iv) and set the stage for the final rally higher toward 126.54 in wave (v) and 3.

Short-term, we will ideally seen minor resistance at 122.63 cap the upside for the final decline closer to 119.70.

Trading recommendation:

We are short EUR from 123.50 with stop placed at 123.05 and take profit at 120.25.