Elliott Wave View: EURJPY Should Continue to Find Support

Technical analysis of Forex market

EURJPY shows an incomplete bullish sequence from March 2022 low favoring further upside. The 100% – 161.8% Fibonacci extension from March 2022 low can see pair reaching 148.3 – 158 level in the medium term. Short term Elliott Wave view in the pair suggests rally from May 12, 2022 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from 5/12, wave 1 ended at 136.69 and pullback in wave 2 ended at 133.89. Wave 3 is expected to end soon with internal subdivision as another impulse in lesser degree.

Up from wave 2, wave ((i)) ended at 136.8 and pullback in wave ((ii)) ended at 134.95. Pair then resumes higher in wave ((iii)) towards 140.31, and pullback in wave ((iv)) ended at 139.81. Expect wave ((v)) to end soon which should also complete wave 3 in higher degree. Afterwards, pair should pullback in wave 4 before 1 more push higher in wave 5. Wave 4 usually is around 23.6 – 38.2% Fibonacci retracement of wave 3 once wave 3 level has been confirmed. As far as pivot at 133.89 low stays intact, expect any short term dips to find support in 3, 7, or 11 swing for further upside.

EURJPY 60 Minutes Elliott Wave Chart