Elliott wave analysis of EUR/JPY for July 15, 2020

EUR/JPY broke out short-term key-resistance at 121.96 and we are back to the bullish count. It means that wave 3 is likely to rise to at least 129.64 and closer to the 161.8% extension target at 135.42.

Short-term the rally from 120.23 looks unlikely and a minor pull-back to 121.43 should be expected before the next push higher towards 124.32 and above.

Only a break below support at 120.23 will change the larger bullish outlook.

R3: 123.20

R2: 122.73

R1: 122.50

Pivot: 122.25

S1: 122.06

S2: 121.85

S3: 121.43

Trading recommendation:

Our stop at 122.00 was hit for a minor loss of 65 pips. We will buy EUR at 121.50 or upon a break above 122.50