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

EUR/JPY remains in a corrective phase after peaking in wave 1/ at 126.76. Following the peak at 126.76, we have seen at A/ down to 124.41 and wave B/ up to retest the 126.76 peak and we are now in wave C/ lower to retest the low of wave A/ at 124.41. We should wait for the completion of the flat correction in wave 2/ as it is likely to set the stage for the next strong rally higher in wave 3/ that will rally way beyond the 126.76 peak. However, for now, we will concentrate on the completion of wave C/ of 2/ close to 124.41.

R3: 126.76

R2: 126.47

R1: 126.19

Pivot: 125.56

S1: 125.16

S2: 124.85

S3: 124.41

Trading recommendation:

We will buy EUR at 124.50 or upon a break above 126.76