FX.co ★ Elliott wave analysis of EUR/JPY for January 12 - 2016

Wave summary:

We continue to look for minor resistance at 128.47 protecting the upside for a break below minor support at 127.28 and more importantly a break below support at 126.76 confirming renewed downside pressure towards 126.05 and below to 125.45.

If minor resistance at 128.47 is broken, a more complex correction will be unfolding and a minor rally closer to 129.48 should be expected before the next downside pressure sets in.

Trading recommendation:

We remain short from 130.95 with stop placed at 129.10. If you are not short EUR yet, then sell near 128.20 with stop placed at 128.50.