Elliott wave analysis of EUR/JPY for January 20, 2016 Market Analysis Review

Wave summary:

The triangle consolidation we have been tracking over the last two weeks is finally over and we should now see resistance at 128.75 protecting the upside for a downside thrust out of the triangle and a decline towards 126.05 and 125.45 as the next downside targets. In the longer term, we continue to look for even lower levels near 123.16 and possibly even lower to 117.37.

Only an unexpected breakout above 128.75 will indicate an upside thrust out of the triangle and a rally to 129.79 before moving lower again.

Trading recommendation:

We are short EUR from 130.95 with stop placed at 128.80. If you are not short EUR, then sell near 128.20 or upon a breakout below minor support at 127.96 and place your stop at 128.80 too.

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

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