FX.co ★ Elliott wave analysis of EUR/JPY for April 8, 2021

EUR/JPY is currently testing the former peak in red wave iii at 130.67. We expect another peak here for a new dip towards support at 128.34 to complete red wave iv and set the stage for the next rally higher to the S/H/S target at 133.65.

In the short term, a break below minor support at 129.81 will confirm that the pair is likely to reach its high for the expected dip towards 128.34 before rising up again.

Trading recommendation:

We are long EUR from 128.40 and we will raise our stop to 129.75 and at the same time sell 50% of our normal position. If done our stop will be placed just above the former peak likely at 130.70.