Elliott wave analysis of EUR/JPY for January 5, 2016 Market Analysis Review

Wave summary:

Once an important short-term support at 131.00 gave away, there was no looking back and we have seen a nice impulsive decline to the long-term support line near 129.00. Sooner or later, we expect the support line to be broken clearly as downside acceleration towards 116.13 is anticipated in the longer term.

As for the short term, we should expect that support in the 128.03 - 128.25 area will protect the downside for a sideways consolidation before a clear break is finally seen, but once this support line is broken for real, prices should accelerate lower towards 123.16 and 116.13.

Trading recommendation:

We are short EUR from 130.95 with stop at 130.65. If you are not short EUR yet, then sell near 129.82 and use the same stop at 130.65.

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

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