FX.co ★ Elliott wave analysis of EUR/JPY for December 27 - 2016

Wave summary:

No change in view here.

We continue to look for a final decline closer to 119.69 to complete the correction in wave (iv) and set the stage for a new impulse rally in wave (v) higher to 126.54.

The alternate wave (iv) count shows that a running triangle is developing and if this is the case, then support at 121.70 will hold firm for a break above 122.78 and more importantly above resistance at 123.20 indicating that wave (v) towards 126.54 is already unfolding.

Trading recommendation:

We are short EUR from 122.41 with stop+reverse placed at 122.85. Take profit + reverse of the short position is set at 120.25.