FX.co ★ Elliott wave analysis of EUR/JPY for June 21, 2021

EUR/JPY has broken below the 23.6% corrective target which does open for the possibility of a continuation lower to the 38.2% corrective target at 129.06. That said, we see solid support near 129.60 that could halt the corrective decline and push EUR/JPY higher again. The decline from 134.06 also show clear signs of being overextended , therefore we should expect a strong reaction higher once a corrective low is in place. A break above minor resistance at 130.89 will be the first good indication that the corrective low is in place and a new impulsive rally is unfolding towards 135.42.

Trading recommendation:

Buy a break above 130.89 for the next impulsive rally towards 135.42