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

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EUR/JPY has now tested the 126.68 target, which means the 5 wave rally from 119.31 could be completed. This rally has not been strong enough or long enough to be a wave 3 rally. Therefore, it is more of a wave 1/ of 3, which means we will have much more upside to cover once wave 2/ of 3 is completed.

In the short-term, we do expect a final push to test the 127.43 level before wave v of 1/ finally completes and wave 2/ of 3 enters the correction phase to at least 123.02.

R3: 127.43

R2: 127.00

R1: 126.68

Pivot: 126.42

S1: 126.07

S2: 125.73

S3: 125.43

Trading recommendation:

We are long EUR from 125.44 and we will raise our stop to 125.70 or we will take profit on our long position at 127.20.

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