FX.co ★ Elliott wave analysis of EUR/JPY for December 26, 2016

Wave summary:

Our outlook has not been changed so far. We continue to look for a deeper corrective decline in wave (iv) towards 119.69 before the final rally in wave (v) towards 126.54 is over.

In the short term, a break below minor support at 122.01 and more importantly below support at 121.70 will confirm a decline towards 119.69.

The alternate count for wave (iv) shows that a running triangle is unfolding. If this scenario proves to be valid, then support at 122.01 must hold firm for a break above 123.20.

Trading recommendation:

We sell EUR at 122.41 and with stop loss placed at 123.00 and take profit at 120.25.