FX.co ★ Elliott wave analysis of EUR/JPY for January 2, 2020

We continue to look for more upside progress towards the ideal target for red wave iii at 123.55 before a more prolonged correction in red wave iv takes over. A break above minor resistance at 120.10 should pave the way for a rally to 122.66 on the way higher to 123.55.

Only a break below 121.52 will indicate a more complex correction is developing as blue wave (iv) and a dip to just below 121.03 should be expected before the next rally higher towards 123.55.

R3: 122.50

R2: 122.20

R1: 122.00

Pivot: 121.85

S1: 121.69

S2: 121.52

S3: 121.29

Trading recommendation:

We are long EUR from 120.25 with our stop placed at 121.40