Elliott wave analysis of EUR/JPY for January 24, 2020

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EUR/JPY dipped to a low of 120.61 which was deeper than expected for wave ii. The correction in wave ii could be complete, but to confirm this is the case, we need a break above minor resistance at 121.76 that will call for more upside pressure towards 122.88 on the way higher to minimum 124.90.

That said, it is possible that a second dip to or just below 120.61 is seen to complete the correction in wave ii. However, key support at 120.15 must protect the downside under this scenario.

R3: 122.01

R2: 121.76

R1: 121.31

Pivot: 121.15

S1: 120.89

S2: 120.61

S3: 120.49

Trading recommendation:

We bought EUR at 121.25 and has placed our stop at 120.10.

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