FX.co ★ Elliott wave analysis of EUR/JPY for August 29, 2022

EUR/JPY has reached its minimum corrective target, but we doubt that it has been enough to correct the rise from 114.42 to 144.25. Therefore, we are looking for more downside correction towards the 50% corrective target at 131.69. That said we are in the possible B-wave of this corrective decline and B-waves are unpredictable as they can take on every three-wave shape possible. So, a clear break above the resistance line from 144.25 will call for a rally to at least 142.33 and possibly 144.25 before moving lower again, while a break below support at 135.69 will call for a direct decline towards the 131.69 target.