FX.co ★ Elliott wave analysis of EUR/JPY for January 6, 2016

Wave summary:

EUR/JPY refuses to correct low and we have to seriously consider the possibility of a wave iv running triangle unfolding instead of the expected expanding flat correction. If a triangle is unfolding, it could be complete with the test of 122.00 and wave (v) higher towards 126,54 is ready to unfold.

A clear break above minor resistance at 123.12 will be the first indication that the triangle consolidation could be complete, while a break above resistance at 123.85 will confirm its completion for the rally higher towards 126.54

Trading recommendation:

We will buy a break above 123.12 with stop placed at 121.90