FX.co ★ Elliott wave analysis of EUR/JPY for January 13, 2021

EUR/JPY requires patience as it continues to trade sideways, but we expect that support at 126.49 and more importantly that support at 125.94 will be able to protect the downside for a clear break above minor resistance at 127.46 towards 130.10 as the next minor target, but ultimately much higher levels remains expected after the major triangle consolidation completed back in May 2020. This formation call for much higher levels in the months and years to come and ultimately a break above the July 2008 high at 169.96.

R3: 130.10

R2: 129.27

R1: 128.48

Pivot: 127.03

S1: 126.49

S2: 125.94

S3: 124.80

Trading recommendation:

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