The Short Term Elliott Wave View on EURJPY suggests that the rally from the low on 12.7.2023 is currently in progress as a 5-wave pattern. This analysis provides insights into the various waves and pullbacks that have occurred in the recent trading sessions.
The pair surged upwards in wave 3, reaching as high as 171.58 before starting a pullback in wave 4. The internal subdivision of wave 4 is described as a zigzag Elliott Wave structure. This pullback saw the pair dropping to 165.6, completing wave ((a)) in a higher degree.
Following wave ((a)), the pair saw a bounce in wave ((b)), characterized by a zigzag in a lesser degree. The completion of wave ((b)) led to another downward movement in wave ((c)), consisting of 5 waves. This downward movement is critical for determining the future direction of the pair.
As long as the pivot at 168.68 remains intact, further downside is expected. The target range for this downward movement is between the 100% and 161.8% Fibonacci extension of wave ((a)), which coincides with the 159 – 162.7 area. This area is predicted to act as a significant support level for the pair.
The Short Term Elliott Wave View on EURJPY provides a detailed analysis of the recent movements in the pair. The wave patterns and pullbacks described in this analysis offer valuable insights for traders looking to anticipate the future direction of EURJPY. It is crucial to monitor the pivot level at 168.68 and observe how the pair reacts around the support area of 159 – 162.7 in the upcoming trading sessions.