EUR/JPY developed a bullish momentum during last two days … It seems that this price action was developing a new 12345 bearish wave pattern within big wave 5: and now I think the price finished wave 1, wave 2 and now is developing bearish wave 3 within the larger bearish wave 5.
We will review different scenarios as the pair can either bounce for bearish momentum or confirm the bearish momentum of wave 3.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.
EUR/JPY Bearish Wave 3 Pattern
The below chart shows that the pair developed a strong bearish momentum… In my view, the pair was developing a big 12345 wave pattern and now it could be ready for a wave 3 of a larger wave 5.
Here are the main conclusions:
- As long as wave 2 did not break the top of wave 1 then this pattern is valid.
- Wave 3 target us -27.2% Fib.
- I always advise traders to protect their profits.
For the moment I expect a more bearish momentum for wave 3 but we still need more confirmation before trading this pair… In the next paragraph, we will discuss this development by using SWAT software.
EUR/JPY Bearish Breakout?
Now it’s time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows bearish momentum… Here are the main developments to consider:
1. The price break the 21 EMA and presenting a short setup.
2. Our target is Wizz 3, 4 and 5.
4. I advise traders always to protect their profit or use trailing stops.
So in my view, we are looking for short setups only as it match the expected wave pattern.
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