FX.co ★ Elliott wave analysis of EUR/JPY for October 30, 2020

The risk-off sentiment continued to dominate the market yesterday as the coronavirus is raging in Europe. Versus EUR, JPY is gaining momentum amid risk aversion. Therefore, EUR/JPY decreased to 121.75. After a deeper decline, the pair may fall to the 78.6% corrective target of wave 1/ at 120.94 before wave 2/ is completed.

In the short-term, we need a break above minor resistance at 122.25 and more importantly, a break above resistance at 123.39 to confirm that wave 2/ is completed and wave 3/ is in motion but until that the corrective trend lower will remain in force.

R3: 123.39

R2: 122.72

R1: 122.25

Pivot: 121.92

S1: 121.75

S2: 121.45

S3: 120.94

Trading recommendation:

Our stop at 121.75 was hit for a 50 pips loss. We will re-buy EUR at 121.00 or upon a break above 122.25