Elliott wave analysis of EUR/JPY for May 25, 2020

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EUR/JPY only climbed to118.53 before a deeper correction was seen. This correction dipped to a low of 116.96, which was a bit deeper than we expected. However, it doesn't alter our bullish count with more upside pressure towards the 161.8% extension target at 119.31. If our bullish view should remain viable, we would expect minor resistance at 117.56 to be broken soon, and more importantly we would expect a break above resistance at 118.08 to confirm the rally towards 119.31.

Only a break below minor support at 117.08 will delay the expected rally higher for a dip 116.62 before a new attempt to break through resistance at 117.56 should be expected.

R3: 118.08

R2: 117.70

R1: 117.56

Pivot: 117.20

S1: 117.08

S2: 116.62

S3: 116.17

Trading recommendation:

We are long EUR from 115.65 with our stop placed at 116.00

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