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Elliott wave analysis of EUR/JPY for July 18, 2019

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EUR/JPY continues to take baby steps lower towards our ideal target at 120.62 to complete wave II and set the stage for a new impulsive rally for the weeks/months ahead.

Short-term minor resistance is seen at 121.52 and as long as this minor resistance and more importantly as long as resistance at 121.68 is able to cap the upside, we should push EUR/JPY lower towards the 120.62 target.

If, however resistance at 121.68 is broken that will indicate that wave III is developing and a rally to and above the 123.36 peak.

R3: 121.83

R2: 121.68

R1: 121.52

Pivot: 121.25

S1: 120.90

S2: 120.62

S3: 120.32

Trading recommendation:

We are looking for a EUR-buying opportunity at 120.85 or upon a break above 121.68

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