Elliott wave analysis of EUR/JPY for October 22, 2015 Market Analysis Review

Wave summary:

We really do not have much to add, as we continue to watch for a move lower and ultimately a downside thrust out of the triangle.

In the short term, we would like to see a break below minor support at 136.04, which will be the first good indication that wave iii lower is developing for a decline to at least 132.98. A decline below 133.11 is likely to confirm the downside thrust and call for a decline to below 126.05 in the longer term.

It will take a break above minor resistance at 136.48 to invalidate our bearish count, but a break above 137.44 will be needed to invalidate the bearish outlook altogether.

Trading recommendation:

We are short EUR from 135.95 and have lowered the stop to 136.50. If you are not short EUR yet, then sell EUR near 135.79 or upon a break below 135.04 and use the same stop at 136.50

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