FX.co ★ Elliott wave analysis of EUR/JPY for July 10, 2020

EUR/JPY took the wrong turn yesterday and failed to break above key resistance at 122.10 and instead plunged down through the support-line at 121.14. Thus, a new impulsive rally is unlikely to unfold. The correction in wave 2 has not completed yet and a deeper correction closer to the 61.8% corrective target at 118.23 and maybe even a dip to the low of wave iv at 117.00 is in motion.

The former support-line will now act as resistance where a minor correction towards 121.44 is seen before the next push closer to the 61.8% corrective target.

R3: 121.44

R2. 121.10

R1: 120.85

Pivot: 120.55

S1: 120.22

S2: 119.76

S3: 119.27

Trading recommendation:

Our stop at 121.25 was hit for a nice profit of 130 pips and we will sell EUR at 121.35 and place our stop at 122.00