FX.co ★ Elliott wave analysis of EUR/JPY for December 23, 2021

EUR/JPY failed to break below 127.38 leaving us with a rare fifth wave failure and a break above minor resistance at 129.64 will confirm the fifth wave failure a confirm wave 4/ has completed and wave 5/ of 3 is in motion towards 135.04 and possibly closer to 139.70.

A fifth wave failure tells us, that impatient clearly is in place in this market and there was no more downside force to eclipse the former low at 127.38, but it also tells us, that a strong rally should be expected as wave 5/ starts to move higher towards 135.04 and maybe even higher.