EUR/JPY trades after 12noon EST

[tovinces]

Since EURJPY broke through its previous minimum level at forex market – 120.6, it finished by now downtrand @ right 100 pips lower — 119.6 level. Analyzing the latter downside move, starting from 125.2, Feb.22, it seems that it has only 3 waves. It explains the possibility of the final downside part of wave.

The described scenario is actual until breaking 124.5 level to the upside. We should keep in mind, that this variant is also possible. The current wave scenario means, that the bearish impulse is at it’s finishing stage, and the latter move could be cut to only 3 waves. Another argument to this pattern is the fact, than wave [3] is much longer comparing to wave [1].

Nevertheless, we keep the priority of downside scenario, as it accords forex elliott analysis system more. Risk ratio for sell orders is attractive, with stops above 124.5 and targets below 119.6