FX.co ★ Elliott wave analysis of EUR/JPY for October 22, 2020

To our surprise, the correction from 125.00 has been larger than expected. EUR/JPY has re-tested the former support at 123.93. This support is holding up well and will likely prove to be the low of this correction. We need a break back above minor resistance at 124.18 and more importantly above resistance at 124.59 to confirm the next rally higher towards 128.44 and likely above.

A solid support is seen in the 123.86 - 123.93 area. If support at 123.49 is broken, we will have to revise our bullish outlook.

R3: 124.59

R2: 124.38

R1: 124.18

Pivot: 124.05

S1: 123.86

S2: 123.71

S3: 123.49

Trading recommendation:

Our stop at 123.90 was hit for a nice little profit and we will re-buy EUR at 123.90 or upon a break above 124.18 and place our stop at 123.45.