Elliott wave analysis of EUR/JPY for January 3, 2022

Happy New Year!

EUR/JPY has rallied nicely after making a fifth wave failure at 127.52. A fifth wave failure is not a common event and indicates the market loosing patience. The loss of patience is normally followed by a swift shift in direction, which is just what we have seen. Short-term we could see a minor set-back towards support near 129.64 before the next strong push higher towards the first target at 135.04 and maybe even more upside towards our second target at 139.70.