Upon examining the short term Elliott Wave view in EURJPY, it is evident that the rally to 165.35 marked the end of wave 3. The subsequent wave 4 pullback unfolded as a double three Elliott Wave structure. The detailed breakdown of the waves, such as wave ((w)), wave ((x)), wave (w), wave (x), and wave (y), reveals a complex corrective pattern.
Following the completion of wave 4, the pair turned higher in wave 5. The upswing from wave 4 consisted of sub-waves (i) through (v), with each wave exhibiting its own distinctive characteristics. The pair experienced pullbacks and extensions as it progressed through the wave 5 development.
Wave (i) concluded at 163.15, followed by wave (ii) dipping to 162.62. The subsequent waves (iii) and (iv) continued the upward movement, culminating in wave (v) ending at 164.43. This completion of wave ((i)) indicated a potential reversal point for the pair.
Wave (ii) Correction Forecast
As the pair entered wave ((ii)), a pullback towards 163.6 was anticipated. The corrective wave (ii) aimed to correct the cycle from the preceding low on 4.15.2024. The expectation of a retracement after an impulsive wave highlighted the cyclical nature of the Elliott Wave theory.
Price Projection and Market Sentiment
The assessment suggested that once wave (i) and (ii) were complete, a wave (iii) would follow suit. The projection of further upside movement was contingent upon the pivot at 162.26 remaining intact. This cautious optimism implied a bullish sentiment prevailing in the market.
Technical Analysis Outlook
The analysis of the short term Elliott Wave view in EURJPY provided valuable insights into the wave structure and potential price movements. By examining the sub-waves and corrective patterns, traders and investors could better comprehend the market dynamics and make informed decisions based on the wave count analysis.
The critical evaluation of the EURJPY pair’s Elliott Wave view shed light on the intricacies of wave analysis and its application in forecasting price movements. Despite the complexities and uncertainties inherent in wave theory, a thorough examination of the wave structure could yield valuable information for market participants seeking to navigate the fluctuations of the financial markets.
Leave a Reply