FX.co ★ Elliott wave analysis of EUR/JPY for September 28, 2020

EUR/JPY has finally begun its drop towards our ideal target at 122.15. This should complete the corrective decline in wave 2/ and set the stage for a new impulsive rally in wave 3/ to above the former peak at 127.07.

Only a direct break above minor resistance at 122.90 will indicate that wave 2/ has already completed and wave 3/ higher is in motion.

R3: 123.43

R2: 122.90

R1: 122.74

Pivot: 122.55

S1: 122.25

S2: 122.15

S3: 122.00

Trading recommendation:

We are short EUR from 123.90 and we will lower our stop+revers to 122.95. We will take profit+revers our short-position to a long EUR position at 122.25