FX.co ★ Elliott wave analysis of EUR/JPY for January 11, 2017

Wave summary;

The break below support 121.53 has changed the expected corrective structure. Instead of a complete triangle consolidation, the triangle turned out to be a b-wave triangle, which meant that wave c lower still should be expected. Wave c of (iv) could be close to completion near 121.25, which a break above minor resistance at 122.33 will confirm or it might extend lower towards support near 118.37 if the minor resistance at 122.33 is able to cap the upside.

Once the correction in wave (iv) is complete, another impulsive rally in wave (v) towards 126.54 remains expected.

R3: 122.94

R2: 122.62

R1: 122.33

Pivot: 121.50

S1: 121.23

S2: 120.87

S3: 120.48

Trading recommendation:

Our target was hit. We will only buy EUR at 118.55 or upon a break above 122.33.