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Elliott wave analysis of EUR/JPY for January 27, 2021

analytics601109a483388.jpg

EUR/JPY found a bottom near the low of our expected target-area between 125.68 - 125.85 (the low came in 125.66). We will be looking for renewed upside pressure through minor resistance at 126.41 towards 127.42 and ideally closer to 129.06 as the next upside target.

An unexpected break below 125.66 will delay our expected rally for a move closer to 125.46, but short-term key-support at 125.23 needs to protect the downside or a decline to 121.59 should be expected before trading higher again.

R3: 127.43

R2: 126.76

R1: 126.43

Pivot: 126.20

S1: 125.78

S2: 125.66

S3: 125.46

Trading recommendation:

We are long EUR from 125.85 with our stop+revers placed at 125.20

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