EURJPY: a setup for bearish move
Yesterday EURJPY managed to regain its previous downside step, climbing for more than 250 pips and setting up a new high @123.95.
Nevertheless, it didn’t break 124.5 level, so bearish outlook on this pair is still actual. The latter upside move has 5-wave pattern, so it can be for sure finished. One more sign of the beggining of the downtrend is volatile bearish move, that started after the max leve l was set.
Analyzing the elliott wave pattern on lower timeframes, I suggested EURJPY is forming at the moment final parts of wave 3 (in order to be completed, we have to see wave [v]).
Scalping scenario for EJ is: opening sell order with SL @123.65 and TP @122.8-122.7
Looking for a mid-term trade, you can open sell orders with initial SL @124 (previous high), and following @124.5 (the top of wave 2 at 1 Hour chart). Final target is seen in 119.6 area.
3 charts are attached.
Hey,
How did that trade work out for you?
Looking at where the market is up to now I guess you got stopped out unless you had a shortened TP.
My thinking is that this pair’s movement will depend highly on the risk appetite of investors on EUR/USD and USD/JPY as people figure out whether they are offloading Euro or Yen. My longer term view on EUR/JPY is that a decent correction is on the cards some time in the near future, but a decent bullish move will need some decent news to drive it.
Just my 2c worth anyway
Cheers,
Pip
Thank you Pip for the comment!
Partly my sell orders at eurjpy have been already closed, by now is still active the one with SL set at 124.5, this level is the most important of all, as it’s the top of previous wave. it’s still not broken, I’m checking thiks pair anyway and post the update soon.