Elliott Wave Predicts Anticipated Support for EURJPY in the Short Term

The EURJPY currency pair is demonstrating signs of a continued advance following its rise from the low observed on December 7, 2023. Traders and analysts closely monitoring the currency pair's movements have noted the development of what appears to be a classic five-wave pattern in its price chart, an indication that the market could be expecting an upcoming level of support.

Understanding the Wave Progressions

Beginning from the low point on December 7, 2023, the first wave peaked at 163.71, which was followed by a retracement in the second wave to 160.21. The pair then surged in a third wave to reach 171.58. Current analyses on the 60-minute chart indicate that the third wave has concluded and the currency pair is now experiencing a fourth wave pullback, showcasing dynamics reminiscent of a zigzag formation within the Elliott Wave framework.

Following the third wave peak, there was a decline to 170.41 marking the commencement of the first sub-wave, which was shortly succeeded by a minor rally ending at 171. Subsequently, there was another drop which formed the third sub-wave, reaching a low of 166.31, and a subsequent fourth sub-wave rally peaked at 168.55.

Potential Trajectories and Near-Term Expectations

The fifth and final sub-wave took the pair down to 165.6, concluding the higher degree wave ((a)). A recovery followed, classified as wave ((b)), showcasing a smaller scale zigzag pattern. This bounce saw initial sub-wave (a) reaching 167.99, sub-wave (b) dipping down to 166.34, and final sub-wave (c) concluding the recovery at 168.68.

The pair is anticipated to resume its downward trajectory as part of wave ((c)), which is expected to unravel in a five-wave sequence. According to recent observations, if the pivot at the 168.68 high remains unbroken, it is likely that the pair will persist in its downward movement. Targets for this descent coincide with the 100% to 161.8% Fibonacci extension of wave ((a)), likely to be situated within the 159 to 162.7 range, representing a potential support zone for the pair.

ElliottWave, EURJPY, Support