FX.co ★ Elliott wave analysis of EUR/JPY for July 19, 2023

EUR/JPY was nicely rejected close to the 157.43 target and has begun its large correction in wave 2. This move aims to reach at least the 38.3% corrective target at 141.35 and more likely the 50% corrective target at 136.21 before turning higher again in the next impulsive rally.

However, for now, it's the downside target should remain in focus as the corrective decline in wave 2 is expected to take months to develop. Short-term we will be looking at resistance near 156.21 for a break below minor support at 154.88 confirming that the next downside pressure is in motion towards 148.46 as the next minor target on the way towards 141.35.