FX.co ★ Elliott wave analysis of EUR/JPY for October 5, 2020

EUR/JPY did not change much after the announcement that President Trump had tested positive for the coronavirus. EUR/JPY dipped to our target level at 123.09 (the low came in at 122.99) before moving higher again.

Ideally, EUR/JPY will stay above the minor resistance at 123.54 but only an unexpected break back below 122.99 will indicate that wave ii still is in motion, but the potential downside should be limited.

R3: 124.24

R2: 123.98

R1: 123.82

Pivot: 123.66

S1: 123.25

S2: 123.09

S3: 122.99

Trading recommendation:

We where long EUR from 122.95 and we took 50% profit 123.68 and rebought EUR at 123.25 and we have paced our stop at 122.95