FX.co ★ Elliott wave analysis of EUR/JPY for August 30, 2021

EUR/JPY broke briefly below key-support at 128.29. The big question is whether this was a forewarning of more downside pressure towards 124.97 or this was a Bear-trap which a break above short-term key resistance at 130.56 will confirm it was. A break above short-term key resistance at 130.56 will also make the S/H/S top-formation a failed pattern, which will call for a rally towards 135.42 and maybe even higher as a lot will be caught short of EUR which they will need to cover fast.

So, we need a break below support at 127.95 to get a signal for a move to 124.97 or a break above resistance at 130.56 to get a call for a rally towards 135.42. Be patient and wait for the signal.