FX.co ★ Elliott wave analysis of EUR/JPY for February 17, 2020

EUR/JPY has seen a low at 118.78 which is just below the lower part of our target zone between 118.85 -119.24. We are now looking for a break above minor resistance at 119.27 as the first good indication that wave 2 is complete and wave 3 is in motion for a rally above the 122.88 peak.

That said we also need to be aware, that as long as minor resistance at 119.27 stays intact slightly more downside pressure could be seen, but the potential downside from here should be limited.

R3: 119.75

R2: 119.58

R1: 119.49

Pivot: 119.27

S1: 118.85

S2: 118.78

S3: 118.55

Trading recommendation:

We are long EUR from 119.35 with our stop placed at 118.35.