FX.co ★ Elliott wave analysis of EUR/JPY for December 20, 2021

The failure to break clearly above resistance at 129.60 is disappointing and could indicate that we need a final dip to just below support at 127.38 to complete wave 4/. This should finally complete the correction in wave 4/ and set the stage for a new impulsive rally in wave 5/ towards at least 135.04 and possibly higher towards the 61.8% target at 139.70. This should complete wave 5/ of 3.

In the short term, we need a break above 129.60 to confirm that wave 4/ has completed and wave 5/ is in motion.