FX.co ★ Elliott wave analysis of EUR/JPY for February 1, 2022

After a deep correction from 131.60 EUR/JPY is headed for the long-term target at 135.04 and maybe even closer to the extension target at 139.70 before a more prolonged correction takes over. The final rally higher towards 135.04 could easily turn into and ending diagonal with overlap between wave one and four, which normally isn't allowed under the Elliott Wave Principle except for this one formation. The rally will will be in five wave, but with the one exception that wave one and four overlaps.

Support is seen at 128.37 which needs to protect the downside for the expected rally higher towards 135.04.