The recent rally in EURJPY has come to a halt at 165.35, indicating the end of wave 3. Following this, wave 4 initiated as a double three Elliott Wave structure. The downward movement from wave 3 saw wave ((w)) concluding at 162.59 and wave ((x)) finishing at 165.17. Subsequently, wave (w) terminated at 163.85, and wave (x) completed at 164.69. The final push downwards resulted in wave (y) reaching 162.26, marking the end of wave ((y)) of 4 in a higher degree.
The currency pair has now transitioned into wave 5, signifying a renewed bullish sentiment. The upward movement from wave 4 witnessed wave (i) concluding at 163.15, while the ensuing wave (ii) retracement found support at 162.62. The following rally in wave (iii) peaked at 164.12, with wave (iv) consolidating at 163.79. Finally, wave (v) completed at 164.43, sealing the culmination of wave ((i)). Subsequently, a corrective wave ((ii)) pullback towards 163.6 ensued, before the pair resumed its upward trajectory in wave ((iii)).
Looking ahead, the next phase of the Elliott Wave pattern suggests that wave (i) is approaching its completion, with wave v expected to terminate imminently. Following this, a corrective wave (ii) correction is anticipated to retrace the cycle from the 4.15.2024 low before initiating a fresh leg upwards. In the near term, as long as the pivotal support at 162.26 holds, the outlook for EURJPY remains favorable for buyers, particularly during any potential downturns in the 3, 7, 11 swing pattern, indicating further upside potential.
By embracing the intricacies of Elliott Wave Theory, traders and investors can gain valuable insights into the future price movements of currency pairs like EURJPY. The ability to identify wave patterns, understand market sentiment, and anticipate potential turning points equips individuals with a strategic advantage in navigating the dynamic forex market. As the pattern unfolds and market dynamics evolve, staying attuned to the nuances of wave cycles can empower traders to make informed decisions and capitalize on lucrative trading opportunities.