Elliott wave analysis of EUR/JPY for January 25, 2021

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EUR/JPY continues to push higher from the 125.23 low. After a temporary corrective decline close to 125.95 we expect a new push higher towards 127.27 and ideally closer to 129.06.

An unexpected break back below 125.23 will delay the expected rally higher and will call for a dip closer to 121.60 before renewed strength should be expected for a break above 127.27 towards 129.06 and ultimately above here too.

R3: 127.27

R2: 126.87

R1: 126.41

Pivot: 126.21

S1: 125.95

S2: 125.66

S3: 125.23

Trading recommendation:

We are long EUR from 125.75. We will take 50% profit here at 126.26 and rebuy EUR at 125.95 or upon a break above 126.41. We will move our stop+revers to 125.20.

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