the EUR/JPY bullish bounce could indicate a potential wave 1-2 (pink) pattern. Price needs to break the resistance trend line (red) to confirm a bullish breakout within wave 3 (pink). Ps. do not forget to check out our upcoming 4x Forex seminars on trading in Europe!
EUR/JPY seems to be building a bearish pullback towards the Fibonacci retracement levels of wave 2 (pink). A break below the 100% Fibonacci level of wave 2 vs 1 (pink) would invalidate the wave 2 (pink) pattern.
EUR/JPY seems to be completing a bearish ABC (purple) corrective pattern back to the Fibonacci levels of wave 2 (pink). A bullish reversal could take place at one of these Fibonacci levels as long as price stays above the support zone (blue box).