FX.co ★ Elliott wave analysis of EUR/JPY for June 17, 2021

EUR/JPY continues to push lower in its wave 4/ correction. This correction is expected to be a complex correction as wave 2/ was a simple a deep zig-zag correction. This means wave 4/ should either be some kind of flat or an triangle consolidation. Which is impossible to say at this point, but this correction will not be easy to trade at all.

Short-term, we are looking for a break below minor support at 132.78 that confirm more downside progress towards the 23.6% corrective target at 130.82 and maybe even closer to the 38.2% corrective target at 129.06 before wave 4/ is complete and wave 5/ to 135.42 takes over.

Trading recommendation:

As this wave 4/ correction is expected to be a complex correction we recommend standing on the sideline and wait to buy EUR near 130.82 for the next push higher in wave 5/ towards 135.42