FX.co ★ Elliott wave analysis of EUR/JPY for July 26, 2021

The double zig-zag correction in wave 4/ stopped in the middle of the 38.2% and 50% corrective support-area. We are now looking for a break above resistance at 131.05 to confirm that wave 4/ indeed has completed and wave 5/ is in motion towards the long-standing target at 135.42. This should complete wave 3 and set the stage for a new prolonged correction in wave 4.

For now our focus should remain on short-term key resistance at 131.05 as a guide for the start of wave 5/ of 3.

Trading recommendation:

Buy EUR above 131.05 for a rally towards 135.42.