The recent analysis on EURJPY using Short Term Elliott Wave suggests that the rally from the low on 12.7.2023 is continuing in a 5-wave pattern. This indicates a bullish momentum in the market as the pair extends higher.
Breaking down the wave pattern, we can see that wave 1 ended at 163.71, followed by a pullback in wave 2 that concluded at 160.21. The pair then surged higher in wave 3, reaching a high of 171.58. The current wave 4 pullback is unfolding as a zigzag Elliott Wave structure, with wave (i) ending at 170.41 and wave (ii) topping at 171.
As the pair entered wave (iii), it declined towards 166.31 before staging a minor recovery in wave (iv) that ended at 168.55. Finally, the last leg of the downward movement in wave (v) terminated at 165.6, completing wave ((a)) in a higher degree. Following this, the pair bounced in wave ((b)) with a zigzag pattern in a lesser degree.
Moving on to the next phase, wave (a) concluded at 167.99, followed by a pullback in wave (b) that ended at 166.34. The final push higher in wave (c) reached 168.68, marking the completion of wave ((b)) in a higher degree. Subsequently, the pair extended lower in wave ((c)) with a 5-wave internal subdivision, showing a continued bearish sentiment in the market.
Looking ahead, it is crucial to monitor the pivot at 168.68, as any breach of this level could signal further downward movement. In such a scenario, the 100% – 161.8% Fibonacci extension of wave ((a)) becomes a potential target area for the pair. This zone, ranging from 159 to 162.7, is where significant support may emerge, potentially halting the current downward trend.
The Short Term Elliott Wave analysis on EURJPY provides valuable insights into the current wave pattern and potential future price movements. By understanding the wave subdivisions and key resistance/support levels, traders can make informed decisions regarding their trading strategies.
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