EUR/JPY ✈️ Key Zone Either Bounce or Continuation 🔥
EUR/JPY developed a bearish momentum during May… It seems that this price action was developing a new bearish wave pattern. And now price is developing the correction of wave 4 and waiting the bearish momentum of wave 5 to take place.
We will review different scenarios as the pair can either bounce for bearish wave 5 or expand the bullish momentum of wave 4.
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 in a Key Zone 61.8% Fibo
The below chart shows that the pair developed a strong bearish momentum and then made a decent correction… In my view, the pair was developing the correction of wave 4 and waiting the bearish momentum of wave 5 to take place :
And here are the main conclusions:
- Wave 4 can be extended till 23.6%,38.2% ,50% and sometimes 62.8% of fib ratio of wave 3.
- the price now is at a key zone as it touching 61.8%
- As long as the price did not break 61.8% pattern is valid any more.
For the moment I expect a new bearish momentum for wave 5 to take place, 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 SWAT CHART
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 bullish momentum but some developments to confirm the bullish wave 5 starts… Here are the main developments to consider:
- Waiting for the price to break the 21 ema with a strong red bearish candle will be our entry.
- Our target will wizz level 5 and 6.
- I advise traders always to protect their profit or use trailing stops.
So in my view, traders should wait for the confirmation before trading this pair and look for short opportunity only as it matches the expected wave.
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