Elliott wave analysis of EUR/JPY for August 6, 2020

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EUR/JPY tested a high of 125.52 and should still see a little more upside into the 125.58 - 125.82 resistance area. From this area, the wave iv correction is expected towards 124.65 and maybe even closer to support at 124.29 before turning higher again towards the next upside targets at 127.255 and ideally closer to 129.26.

As long as minor support at 125.12 is able to protect the downside, a final push higher into the 125.58 - 125.82 area is still expected. However, from here or upon a break below the minor support at 125.12, the wave iv correction should be in motion.

R3: 126.13

R2: 125.82

R1: 125.58

Pivot: 125.12

S1: 124.65

S2: 124.29

S3: 123.98

Trading recommendation:

We took profit of 50% of our long position at 125.50 of 215 pips and we will move our stop higher to 125.10 for the final 50% or take profit on the final 50% at 125.75.

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