EURJPY Trading In A Pullback; More Weakness in View
Hello traders, today we are going to take a look at EURJPY.
EURJPY is currently trading in a temporary pullback from the lows, which we think can be corrective wave 2. Corrective wave 2 is part of a five-wave cycle and represent the first correction within an impulse. In Elliott wave theory corrective waves must have minimum three legs for a potential completion, and as we see in our case, maybe leg c is already in progress. That said, wave 2 usually retraces 61.8% of the first wave 1, before a bigger sell-off into wave 3 may occur. We still see room left for Fibonacci ratio of 61.8 to be reached, so let's wait and see what happens. The Fibonacci ratio of 61.8 can later offer resistance and push price even lower.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
EURJPY is currently trading in a temporary pullback from the lows, which we think can be corrective wave 2. Corrective wave 2 is part of a five-wave cycle and represent the first correction within an impulse. In Elliott wave theory corrective waves must have minimum three legs for a potential completion, and as we see in our case, maybe leg c is already in progress. That said, wave 2 usually retraces 61.8% of the first wave 1, before a bigger sell-off into wave 3 may occur. We still see room left for Fibonacci ratio of 61.8 to be reached, so let's wait and see what happens. The Fibonacci ratio of 61.8 can later offer resistance and push price even lower.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Comment:
EURJPY is currently dropping; we see it in wave 3 of three, with possible target area around 124.42. -->
