FX.co ★ Elliott wave analysis of EUR/JPY for January 6, 2021

We continue to look for more upside pressure towards the 129.06 target as long as support in the 125.71 - 126.00 area is able to protect the downside for a break break above 126.79.

Longer-term the picture is dominated by a huge triangle consolidation that started way back in July 2008 and was completed in May 2020 and a new impulsive rally to above 169.57 is now unfolding. The new impulsive uptrend is still in its infancy and has a long way to go and should continue to push higher in the years to come. Therefore it's important not to lose sight of the larger picture, because of short-term noise.

R3: 127.72

R2: 127.30

R1: 126.78

Pivot: 126.39

S1: 126.00

S2: 125.71

S3: 125.50

Trading recommendation:

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