Elliott wave analysis of EUR/JPY for July 30, 2019

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Support in the 120.54 - 120.60 area held well and protected the downside for a new rally to attack the 121.35 peak. This peak has not been conquered yet, but if minor support at 120.96 is able to protect the downside for a new attempt to break above 121.35, we think the next attempt will be successful. So, the price is likely to extend its climb to 122.32 and even higher to 123.36.

That said, we also have to accept the possibility of the rally from 120.71 to be part of a flat correction. A clear break below 120.96 will increase the odds for this scenario and call for another dip to the 120.54 - 120.71 area before EUR/JPY is ready to take off in the next impulsive rally.

R3: 121.84

R2: 121.68

R1: 121.35

Pivot: 121.22

S1: 120.96

S2: 120.88

S3: 120.71

Trading recommendation:

We are long EUR from 120.85 with our stop placed at 120.00

The material has been provided by InstaForex Company - www.instaforex.com