Elliott wave analysis of EUR/JPY for May 19, 2020

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After a perfect 61.8% correction in wave ii/ EUR/JPY rallied through the ending diagonal resistance-line without any problems at all. With the break above the ending diagonal resistance-line, we now have confirmation that an important low has been seen at 114.40 and a return to the starting point of the ending diagonal at 122.86 should be expected within the coming months.

The strong rally out of support at 115.91 could indicate a minor consolidation towards 116.76 before the next strong rally higher to 118.61 on the way higher to 122.86 as the first upside target.

R3: 117.76

R2: 117.42

R1: 117.23

Pivot: 116.99

S1: 116.75

S2: 116.54

S3: 116.33

Trading recommendation:

We bought EUR at 115.65 and we will move our stop to 115.20

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