EURJPY: The Reassessment

In our previous analysis of EURJPY we said that “the count would need to be reassessed, if the EURJPY exchange rate returns above 137.00.” The pair climbed to 141.05 in the beginning of June and is now trading around 138.65. So, it is time for the reassessment. The last time we thought EURJPY was going to complete an expanding flat correction and head south. This idea is still valid. The only difference is in the length of wave C of the pattern. A month ago, we assumed wave C is over at 136.96. Now we believe it is going to reach 142.20, before the bears return. The next chart explains why.
eurjpy 24.06.15
As visible, wave C of the corrective pattern does not seem to be finished yet. It is supposed to be a five-wave impulse, but its fifth wave is currently missing. That is why we think we should expect wave 5 of C before the whole wave (2/B) flat retracement is over. Ideally, EURJPY should reverse to the south between 142 and 143, since there is the 61.8% Fibonacci level. In conclusion, as long as wave 1 and 4 of C do not overlap, we will be waiting for wave 5 up. However, the bulls should be careful, because the bears might be setting up a trap.

New to Elliott Wave?

Elliott Wave principle offers a completely new understanding of what the nature of the markets is, what drives them and what can be derived from their movement. This course is for those of you, who have been looking for an honest Elliott Wave guide, describing the method’s advantages over other trading tools, but not hiding its weaknesses.

Check Video Course    or     Check our eBook


See our Video Course
or check our eBook

Last year over 60k readers trusted EWM Interactive to help them in their trading decisions.

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- Xavier N.

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- J. Kotzee

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- C. Montgomery

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- C. Montgomery