FX.co ★ Elliott wave analysis of EUR/JPY for January 21, 2021

We have seen the expected dip, even though a bit deeper that our ideal target-area between 125.40 -125.50, The low has been seen at 125.23. We continue to favor short-term key support at 125.06 will be able to protect the downside for a break above minor resistance at 126.21 for a continuation higher to 127.50 and higher to 129.06.

An unexpected break below 125.06 will delay our bullish view for a dip to 124.55 and maybe even closer to 123.85 before pushing higher again.

R3: 126.55

R2: 126.19

R1: 125.88

Pivot: 125.63

S1: 125.36

S2: 125.24

S3: 126.05

Trading recommendation:

We are long EUR from 125.75 and we have our stop placed at 125.05