Elliott wave analysis of EUR/JPY for February 19, 2021

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Today we will take a look at the long-term chart of EUR/JPY. As can be seen EUR/JPY broken above the triangle resistance-line in mid-December 2020 near 126.00 and after a period of consolidation just around this resistance-line EUR/JPY has started to move higher again in wave [C]. Ultimately wave [C] should break above the peak of wave [A] at 169.97 so we should expect much higher levels in the years to come.

Why should we take a look at the long-term picture from time to time? Because it's easy to see the trees of the wood when standing in the middle of it and loosing sight of the long-term picture could be costly. We know that the rally to above 169.97 won't be in a straight line, but keeping the long-term picture in mind, will help us keep focus and make us better traders both in the short- and long-term.

Short-term key-support is seen at 127.04.

Next medium-target is seen at 137.50.

Trading recommendation:

We are long EUR from 125.85 with our stop placed at 126.85. If you are not long EUR yet, then buy near 127.04 and place your stop just below 127.00. We are still in the very early parts for this new long-term uptrend and risk/reward is clearly in favor of being long EUR.

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