Short Term EUR/JPY Elliott Wave view suggests the rally from 4/16 low is unfolding as a double three Elliott Wave structure. Up from 4/16 (114.8) low, Intermediate wave (W) ended at 125.81 and Intermediate wave (X) is proposed complete at 122.53. A break above 125.81 however is still needed to add conviction that the next leg higher has started.
From 122.53 low, the rally is also unfolding as a double three Elliott Wave structure. Minute wave ((w)) ended at 125.8 and Minute wave ((x)) ended is proposed complete at 123.11. Rally from there is unfolding as a double three where Minutte wave (w) ended at 125.31 and Minutte wave (x) pullback has reached 100% in 3 swing from 6/2 high. Thus while pair stays above 123.11, and more importantly above 122.53, expect pair to extend higher or at least bounce in 3 waves.
If pair breaks below 123.11, then pair is likely doing a double correction from 5/16 peak. This suggests pair can open extension lower to 121.6 – 122.25 area in case of a double correction. From this area, buyers should appear again for an extension higher or at least a 3 waves bounce.
EUR/JPY 1 Hour Elliott Wave Chart
