Elliott wave analysis of EUR/JPY for July 5, 2019

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We still need a breakout above minor resistance at 121.84 to indicate that EUR/JPY has bottomed and a new impulsive rally in wave 3 is developing for an ultimate breakout above the 127.50 peak.

As long as minor resistance at 121.84 is able to cap the upside, we still could see a final dip closer to 121.00. Howvever, the important support at 120.94 must under no circumstance be broken, as that will leave us with a three-wave rally from 120.74 and hence a decline below here.

R3: 122.24

R2: 122.13

R1: 121.84

Pivot: 121.69

S1: 121.40

S2: 121.19

S3: 120.94

Trading recommendation:

We are long EUR from 121.50 with our stop placed at 120.90.

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