The EURJPY currency pair recently completed a 5-wave upward move, terminating at 159.773. Now, it's in a corrective phase. In my analysis, the larger corrective wave A likely finished at 156.568. Currently, the pair seems to be forming a contracting triangle as part of corrective Wave B, after which we expect a drop in wave C.
Here's the key: If the price breaks below 157.380, it confirms a bearish trend and we jump in, and if it drops further below 157.063, it strengthens our bearish view for Wave C downward move. This analysis holds unless the price breaks the 158.452 price level to the upside.
Our target price for the bearish move is 155.720.
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Our analysis of EURJPY initially saw a favorable 70-pip movement in our direction. However, a sudden and sharp reversal occurred following the release of the German CPI report and Powell Speech on Thursday. In response to these developments, we have found it imperative to revise our chart, and the latest update is as follows. While our invalidation level and profit target remain unchanged, our position within wave E of the contracting triangle has undergone a slight adjustment to (152.330) as shown in the chart below.