At market close on Friday 2 February, EURJPY reached the upper channel of the micro-Elliott Wave (ABCDE waves) which was the last part of the Elliott wave from the previous bullish movement (12345 waves). Wave 12345 also indicates a break of structure heading upwards.
We predict that EURJPY will complete leg E of the micro-Elliott Wave and will react at the price level of 157.000 which is also coincides with the 0.786 Fibonacci zone, where there is equal low liquidity to take and also a flip zone in a smaller time frame.
For entry, wait for the price to retrace at level 157.000 - 157.800. If there is a change of character in this zone, take a buy position and set take profit at the level of 163.000 - 163.610, or the previous resistance.
Cancel the setup if the price immediately shoots up to the 161.500 zone or breaks the 155.100 level.
Order cancelled
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Price just broke upper channel without giving us the sign of pullback. Cancel trade and we're looking for other opportunities next week.