FX.co ★ Elliott wave analysis of EUR/JPY for January 20, 2021

EUR/JPY has traded sideways since the minor peak at 126.21. We do expect a bit more downside to the 125.40 - 125.50 support-area. It is possible that we only see a sub-normal correction to 125.75 before trading higher through minor resistance at 126.21 for a continuation to 127.46 and higher to 129.06.

Upon a break above 127.46, a larger S/H/S bottom will be triggered with a target near 132.45.

Key-support remains the 125.06 low.

R3: 126.72

R2: 126.54

R1: 126.21

Pivot: 125.96

S1: 125.75

S2: 125.50

S3: 125.40

Trading recommendation:

We are long EUR from 125.75 with our stop placed at 125.05