FX.co ★ Elliott wave analysis of EUR/JPY for January 6, 2020

EUR/JPY completed a leading diagonal mid-December with the test of 122.66 and is currently correcting the advance from 115.83 to 122.66. The ideal corrective target is seen at 119.26 when wave 2 has corrected 50% of wave 1. This is also the low of wave iv of one lessor degree.

Short-term we are looking for a minor bounce into resistance in the 121.18 - 121.36 area from where the next downside pressure is expected towards the 119.36 target.

R3: 121.69

R2: 121.36

R1: 121.18

Pivot: 120.87

S1: 120.37

S2: 119.88

S3: 119.26

Trading recommendation:

We will sell EUR at 121.20 with a 122.20 stop and take profit at 119.50.