Elliott wave analysis of EUR/JPY for June 5, 2020

Red wave iv/ came through a super small correction only stretching from the 122.62 high to a low at 121.81 before powering ahead towards the ideal red wave v/ and black wave iii target at 124.26. Once black wave iii is completed at 124.26 we should expect a complex flat correction in black wave iv with the ideal target set close to 121.81.

In the short-term, a break below minor support at 123.26 will indicate that black wave iii has completed and the correction in black wave iv is in motion.

R3: 124.70

R2: 124.26

R1: 123.90

Pivot: 123.55

S1: 123.26

S2: 122.78

S3: 121.81

Trading recommendation:

We will sell 50% of our normal EUR position at 124.20 and place our stop at 125.00. We will take profit and re-buy EUR at 122.00