the EUR/JPY has made a deep retracement after it posted a new higher high as expected. The current pullback is likely to be a wave 2 (pink) retracement after bullish wave 1 (pink) pattern. Ps. do not forget to check out our upcoming 2x Forex seminars on trading in Europe!
The EUR/JPY has made a bullish bounce at the 38.2% Fibonacci retracement level and the support trend lines (blue). But price could make a deeper correction towards the 50% Fibonacci retracement level within wave 2 (pink) before continuing higher. The invalidation level of the current wave 1-2 (pink) pattern is the bottom which is indicated byt he 100% Fibonacci level and the blue box.
EUR/JPY uptrend seems to have finished with the most recent high, which is indicated as wave 1 (pink). The bearish correction is most likely an ABC (purple) zigzag pattern that could either complete the wave 2 (pink) correction or just be 1 part of a larger retracement towards the 50% Fibonacci.
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