Elliott wave analysis of EUR/JPY for February 14, 2020

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EUR/JPY is now testing the lower part of our target zone between 118.85 - 119.24 and we see a clear loss of downside momentum. To indicate that a bottom could be in place, we need a break above 119.15 and more important a break above resistance at 119.90 that confirms wave iv is complete and v to above 122.88 is developing.

As long as minor resistance at 119.15 stays intact, we could see more downside pressure, but the potential downside from here should be limited.

R3: 119.75

R2: 119.58

R1: 119.49

Pivot: 119.15

S1: 118.85

S2: 118.78

S3: 118.55

Trading recommendation:

We are long EUR from 119.35 and we have our stop placed at 118.35

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