FX.co ★ Elliott wave analysis of EUR/JPY for August 7, 2020

EUR/JPY rallied nicely to test the low of our target area between 125.58 - 125.82. EUR/JPY peaked at 125.59 and then, turned around in wave iv. There should be a simple zig-zag correction towards 123.78 before the next impulsive rally higher towards 127.25 and ideally closer to 129.26.

Resistance at 125.43 should be able to protect the upside from the downside pressure towards 123.78.

R3: 125.82

R2: 125.59

R1: 1255.43

Pivot: 125.01

S1: 124.63

S2: 124.25

S3: 123.78

Trading recommendation:

We sold the last 50% of our long position at 125.10 and booked another 175 pips. We will buy EUR at 123.85 or upon a break above 125.43