FX.co ★ Elliott wave analysis of EUR/JPY for November 20, 2023

We have seen the expected minor rally to test resistance at 163.64 and should now see renewed downside pressure towards 162.13. A break below will confirm that wave 3 has peaked and wave 4 is unfolding. As wave 2 was a flat correction, we should see wave 4 being a zig-zag correction or a series of zig-zags as in a triangle. Triangle consolidations are very common for the JPY crosses.

Once minor support at 162.13 is broken, the next support to look for is seen at 161.50 and then at 159.80 as EUR/JPY is moving closer to the lowest target at 157.94 and likely closer to the 38.2% corrective target at 154.00.