FX.co ★ Elliott wave analysis of EUR/JPY for January 26, 2021

We have seen the expected minor correction from the minor peak at 126.41. We where looking for minor support at 125.95 to be able to protect the downside, but the correction has extended towards the support-zone between 125.68 - 125.82, which ideally should be able to protect the downside for a break above minor resistance at 126.06 and more importantly above the minor peak at 126.41 that will call for a continuation higher to 127.43 on the way towards 129.06 and ultimately above here too.

Only a break below support at 125.23 will delay our bullish view and call for more downside pressure to 121.59 before renewed strength sets in.

R3: 127.43

R2: 126.76

R1: 126.43

Pivot: 126.20

S1: 125.78

S2: 125.68

S3: 125.46

Trading recommendation:

We bought 50% EUR at 125.95 for an average 125.85 and we have placed our stop+revers at 125.20