FX.co ★ Elliott wave analysis of EUR/JPY for July 31, 2020

EUR/JPY is ready to break above minor resistance at 124.29 which will call for a continuation higher towards 125.82 and 127.38 on the way towards the next upside target at 129.26. We need to be aware that a failure to break above resistance at 124.29 will lead to a prolonged corrective phase and a retest of support at 122.80 before the next impulsive rally above 124.29 is seen. A break below support at 123.30 will confirm that a more prolonged corrective phase is developing.

R3: 125.05

R2: 124.85

S3: 124.30

Pivot: 123.92

S1: 123.60

S2: 123.30

S3: 122.80

Trading recommendation:

We are long EUR from 123.35 and we will move our stop higher to 123.25. If our stop is hit, we will re--buy EUR at 122.90.