FX.co ★ Elliott wave analysis of EUR/JPY for January 14, 2020

EUR/JPY continues to move higher and has broken clearly above resistance at 122.22 telling us that our expectation for a second corrective decline to 119.26 likely is false. The break above 122.22 and more importantly above the former peak at 122.66 indicate that wave 2 completed with the test of 120.17 and wave 3 now is unfolding.

Short-term we expect a rally to 122.93 and then a correction towards support in the 121.81 - 122.09 area before higher again to 123.84 to complete wave i of 3.

R3: 123.84

R2: 123.34

R1: 122.93

Pivot: 122.43

S1: 122.14

S2: 121.77

S3: 121.43

Trading recommendation:

Our stop at 122.55 was hit for a 80 pips loss. We will buy EUR at 122.25.