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Elliott wave analysis of EUR/JPY for January 13 - 2016

2016-01-13-EURJPY-8H.png

Wave summary:

Overall we continue to look for more downside pressure towards 126.05 and below to 125.45 as the next downside targets. As long as minor resistance at 128.47 protects the upside, we are looking for a direct break below minor support at 127.64 for a new test of 126.76 on the way lower to 126.05.

If however, minor resistance at 128.47 is broken, that will prolong the correction in red wave (iv) for a rally to 129.48 before going lower again.

Trading recommendation:

We are short EUR from 130.95 and will move our stop lower to 128.55. If you are not short EUR yet, then sell close to 128.20 and use the same stop at 128.55.

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