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12.12.201609:10 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for December 12, 2016

Long-term review

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8-Hourly

Wave summary:

After the strong decline from 123.35, we have seen the expected minor correction, which is expected to find resistance in the 122.11 - 122.44 area for the next decline towards the 118.00 - 118.38 area to complete the correction in wave (iv) for the last rally higher towards 126.54 to complete wave (v) and 3. At 126.54 wave 3 will be 161.8% the length of wave 1, which is the minimum extension target, so we have to be aware of the possibility of an extension beyond 126.54 that will target 129.95 where wave 3 will be 200% the length of wave 1.

For the moment, look for a top in the 122.11 - 122.44 area for a break below minor support at 121.60 confirming the next part of the decline towards 118.00 - 118.38 area.

Trading recommendation:

We sold EUR at 122.10 with stop placed at 123.40. If you are not short EUR yet, then sell near 122.44 or upon a break below 121.60 and use the same stop at 123.40. Place take profit at 118.50.

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