Elliott wave analysis of EUR/JPY for July 14, 2020

EUR/JPY is again testing short-term resistance at 121.96 which is expected to cap the upside for a break below 121.09 indicating renewed downside pressure towards 119.26 and 118.23 and maybe even closer to 117.00.

A break above 121.96 will change the preferred outlook back to the former bullish count. Therefore, the pair may return to the peak at 124.32 and higher.

R3: 122.80

R2: 122.53

R1: 122.18

Pivot: 121.96

S1: 121.39

S2: 121.09

S3: 120.63

Trading recommendation:

We sold EUR at 121.35 and we have placed our stop at 122.00