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Elliott wave analysis of EUR/JPY for December 29, 2015

2015-12-29-EURJPY-4H.png

Wave summary:

There is no change in a view here. We continue to watch for a rally towards 135.97 as long as support at 131.46 is able to protect the downside. In the short term, a breakout above minor resistance at 132.80 will confirm a new rally to 134.59 and above towards 135.97.

Only an unexpected breakout below support at 131.00 will invalidate the bullish outlook indicating that wave (ii) ended early at 134.59 and wave (iii) lower to 126.05 and below is developing.

Trading recommendation:

We are long EUR from 132.17 with stop placed at 131.40. If you are not long EUR yet, then buy a breakout above 132.46 and use the same stop at 131.40, but be ready to move it higher soon.

The material has been provided by InstaForex Company - www.instaforex.com