FX.co ★ Elliott wave analysis of EUR/JPY for February 6 - 2020

The correction in wave iv hit 121.15. We are now looking for a break below minor support at 120.63 and more importantly, a break below support at 120.43. It will indicate that wave v is heading down to the ideal target-zone between 118.85 - 119.24.

If the pair fails to hold below short-term key-resistance at 121.26, it will decrease. Wave 2 has already tested 119.79 and wave 3 has started a rally above 122.88.

R3: 121.75

R2: 121.57

R1: 121.26

Pivot: 120.86

S1: 120.63

S2: 120.43

S3: 120.26

Trading recommendation:

We are short EUR from 120.40 with our stop placed at 121.26