FX.co ★ Elliott wave analysis of EUR/JPY for June 7, 2021

EUR/JPY is following the expected path and has stated its decline towards the ideal target for wave 4/ at 130.81 and possibly even closer to the 38.2% corrective target of wave 3/ at 129.06. Short-term we would like to see a break below minor support at 132.95 to confirm that wave 4/ is in motion and 130.81 is in focus.

As wave 2/ was a simple deep zig-zag correction, we are looking for a more complex correction in wave 4/, which makes it much unpredictable and hard to trade.

Trading recommendation:

We are looking for a dip to 130.81. As this wave 4/ correction in expected to be a complex correction we recommend staying on the sideline and buy near 130.81