In this technical analysis, we are focusing on the Elliott Wave charts of EURJPY, which have been shared in the members area of the website. Our analysis has been leaning towards long positions in YEN pairs, and recently EURJPY experienced a pullback in a 3-wave pattern. Buyers entered the market at the equal legs zone, indicating a potential upward movement.
The current view suggests that EURJPY is undergoing a 4 red pullback, correcting the cycle from the 160.229 low in an Elliott Wave Flat pattern. The price has already reached the extreme zone within the range of 162.397-160.685, where we expect potential buyer activity leading to a rally towards new highs or a three-wave bounce.
EURJPY has responded favorably from the Equal Legs-Buyers zone as predicted. We believe that the wave 4 red pullback has been completed at the 162.2428 low. Confirmation of the next upwards movement will come with a break of the 3 red peak. We suggest avoiding selling the pair during any pullback and favor the long side for now.
