FX.co ★ Elliott wave analysis of EUR/JPY for February 7, 2020

We continue to look for a clear break below minor support at 120.63 and more importantly a break below support at 120.43 to confirm wave v of 2 is unfolding towards the ideal target-zone between 118.85 - 119.24. This should complete wave 2 and set the stage for a new impulsive rally above the peak of wave 1 at 122.66.

Minor resistance at 121.02 should be able to cap the upside for the expected break below 120.63. If, however minor resistance at 121.02 is broken that is a strong indication that we have seen a premature low for wave 2 and wave 3 is developing already.

R3: 126.26

R2: 121.02

R1: 120.80

Pivot: 120.63

S1: 120.43

S2: 120.26

S3: 120.01

Trading recommendation:

We are short EUR from 120.40 and we will lower our stop+revers to 121.10