FX.co ★ Elliott wave analysis of EUR/JPY for August 9, 2021

We continue to look for more upside pressure towards the long-term target at 135.42 in wave 5/. This should complete wave 3 of one higher degree and once complete we should be looking for a more prolonged correction in wave 4. However, for now our main focus should remain towards the upside and a break above minor resistance at 131.05 that will confirm that wave 5/ is in motion towards the 135.42 target.

That said, we call the attention to the possibility of a S/H/S top building with the neck-line seen at 128.29. We see this as the alternate count and not the main count and only an unexpected break below support at 128.29 will trigger the top formation. We can't rule this alternate count out entirely, but it's not our preferred count.