FX.co ★ Elliott wave analysis of EUR/JPY for August 14, 2020

EUR/JPY has now tested the 126.68 target, which means the 5 wave rally from 119.31 could be completed. This rally has not been strong enough or long enough to be a wave 3 rally. Therefore, it is more of a wave 1/ of 3, which means we will have much more upside to cover once wave 2/ of 3 is completed.

In the short-term, we do expect a final push to test the 127.43 level before wave v of 1/ finally completes and wave 2/ of 3 enters the correction phase to at least 123.02.

R3: 127.43

R2: 127.00

R1: 126.68

Pivot: 126.42

S1: 126.07

S2: 125.73

S3: 125.43

Trading recommendation:

We are long EUR from 125.44 and we will raise our stop to 125.70 or we will take profit on our long position at 127.20.