FX.co ★ Elliott wave analysis of EUR/JPY for September 1, 2020

EUR/JPY is currently retesting the 126.77 peak, but we still think that more downside correction would be the optimal solution before the next real upswing towards at least 129.23 and ideally closer to 135.46 occurs. The ongoing correction should push the pair close to support at 124.41 before completing the correction that has been in motion since the August 13 peak at 126.77. In the short-term, a break below minor support at 126.27 will trigger a second dip close to 124.41 to complete the correction in wave 2/.

R3: 127.51

R2: 127.14

R1: 126.77

Pivot: 126.27

S1: 125.93

S2: 125.36

S3: 124.85

Trading recommendation:

We will buy EUR at 124.50 or upon a clear break above 126.85