FX.co ★ Elliott wave analysis of EUR/JPY for July 24, 2018

We expect a corrective low to be in place at near 129.76 (the 61.8% corrective target of red wave iii or alternate red wave i/. A break above minor resistance at 130.44 will be a strong indication that a new impulsive rally towards 133.60 is developing in red wave v or alternate red wave iii/.

As long as resistance at 130.44 is able to cap the upside, we could see a final spike closer to resistance at 129.75, but a corrective low should be set soon.

R3: 131.05

R2: 130.75

R1: 130.44

Pivot: 130.27

S1: 130.01

S2: 129.75

S3: 129.56

Trading recommendation:

Our stop at 129.80 was hit for a loss. We will buy EUR again upon a break above 130.44 and place our stop 10 pips below the most recent low.