FX.co ★ Elliott wave analysis of EUR/JPY for September 30, 2020

EUR/JPY has rallied from the 122.34 low and the clear break above the resistance-area between 123.24 - 123.42 confirms that wave 2/ has completed and wave 3/ higher now is in motion for an ultimate break above the former peak at 127.02.

In the short term, we expect one more rally to jus above 124.25 to complete wave i and set the stage for a correction in wave ii close to 123.30 before the next impulsive rally higher.

R3: 124.65

R2: 124.25

R1: 123.96

Pivot: 123.73

S1: 123.60

S2: 123.45

S3: 123.30

Trading recommendation:

We are long EUR from 122.95 with our stop placed at break-even at 122.95. We will take 50% profit at 124.25 and wait for a new buying opportunity near 123.30.