Elliott wave analysis of EUR/JPY for June 17, 2020

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The correction from 122.12 has been deeper than we expected. These mini-rallies followed by deep corrections are a series of one's and two's and once the series of wave three's and four's being, we should see a powerful rally through minor resistance at 121.14 and more importantly resistance at 122.12 for a continuation towards the ideal target for wave iii/ at 125.77.

Only an unexpected break below minor support at 120.31 will indicate that red wave iv still is in motion but the potential downside should be limited to 119.84.

R3: 121.12

R2: 121.46

R1: 121.14

Pivot: 120.85

S1: 120.62

S2: 120.31

S3: 119.84

Trading recommendation:

We are long EUR from 120.90 with our stop placed at 120.25. If our stop is hit, we will re-buy EUR at 119.95

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