FX.co ★ Elliott wave analysis of EUR/JPY for December 17, 2020

The sideways consolidation has extended and we have now seen a third dip to 125.71, which should be more than enough to complete this consolidation, but until short-term important resistance at 126.72 has been eclipsed more sideways consolidation can't be excluded.

However, a break above 126.72 will confirm more upside progress towards 127.02 and ultimately closer to 129.06 as the next upside targets.

R3: 127.27

R2: 127.30

R1: 126.78

Pivot: 126.26

S1: 126.00

S2: 125.71

S3: 125.50

Trading recommendation:

We are long EUR from 126.25 with our stop placed at 125.70