Elliott wave analysis of EUR/JPY for September 16, 2020

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EUR/JPY has seen a deep correction in wave ii. Ideally, this wave ii correction has completed with the test of 124.58 which was a bit below the low of our ideal target-area between 125.18 and 124.80. A break above minor resistance at 125.08 will confirm the completion of wave ii and the onset of wave iii that ultimately should break above the peak of a wave i at 126.43 for a continuation higher towards 129.24 and above.

The fact that wave ii has moved close to the starting point of a wave i at 124.38 offers a low-risk buying opportunity as the stop can be placed just below 124.38, while the possible return could be many times larger.

R3: 125.60

R2: 125.21

R1: 125.08

Pivot: 124.80

S1: 124.58

S2: 124.38 - Key support, must not be broken under this bullish count

S3: 124.28

Trading recommendation:

We are long EUR from 124.41 with our stop placed at 124.35

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