Elliott wave analysis of EUR/JPY for Feb 5, 2020

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As we suspected, wave iv rose slightly above minor resistance at 120.42. The peak at 120.99 should be enough to complete wave iv and set the stage for the final decline in wave v towards the 118.85 -119.24 target-zone. This should complete the correction in wave 2 and mark the beginning of a new impulsive rally in wave 3.

In the short term, a break below support at 120.42 (former resistance turns into support) will confirm that wave iv has completed and wave v is developing.

R3: 121.43

R2: 121.26

R1: 120.99

Pivot: 120.68

S1: 120.42

S2: 120.05

S3: 119.75

Trading recommendation:

We sold EUR at 120.40 with a 121.26 stop. We take profit and buy EUR at 119.25.

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

Source:: Elliott wave analysis of EUR/JPY for February 5 – 2020

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