20.01.201413:32 Forex Analysis & Reviews: Elliott Wave Analysis of EUR/JPY for January 20, 2014

We now have seen a five wave decline from 145.69 down to 140.49 followed by a three wave rise to 142.91 and from 142.91 a new five wave decline. All this confirms that an important top has been seen at 145.69 and a major correction to the rally of the 2012 low at 94.10 to the 2013 high at 145.69. The first major corrective target is at 133.52, which marks the 23.6% corrective target, but it is more likely, that we will see an even larger correction towards 125.99, which marks that 38.2% corrective target. In the short term we will be looking for resistance at 141.61 and strong resistance at 141.91 to protect the upside for a break below support at 141.04 and more importantly for a break below 140.60, which confirms the next downswing towards 137.18 and likely even lower.

Trading recommendation: We took a nice profit at 141.60. We will sell EUR again at 141.85 or upon a break below 141.04 with stop at 142.95.