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

EUR/JPY failed to break below short-term support at 129.54. It is once again testing the resistance level at 130.67. A break above here will confirm that red wave iv/ is complete and red wave v/ is in motion towards the 132.16 target.

Notably, as long as resistance at 130.67 is able to cap the upside, we still cannot exclude a deeper corrective decline towards 128.90 before red wave iv/ completes and red wave v/ takes over. but It should be clear that the consolidation from 130.67 is corrective and the next impulsive move will be to the upside and the 132.16 target.

Trading recommendation:

Buy EUR near 128.90 if possible or buy a break above resistance at 130.67 for a rally towards 132.16