According to 20 March EURJPY daily Elliott wave analysis we can expect volatility in EURJPY. Can you see this 150 pips impulse wave on EURJPY?
20 March, AtoZForex -In the last update,we revised the wave count of this currency pair after price showed good signs of a real bullish resurgence. Our long term bias was once bearish until price showed that the long term 4th wave may not have completed yet. There is also a possibility that the expected impulse wave on the weekly chart could be a zigzag pattern instead. Sometimes, we see a pattern transforming to a different pattern.
This can be detected if price doesn’t fulfill expectations. For example, after a 4th wave zigzag pattern, it is expected that price completes the 5th wave with an ending diagonal or a simple impulse wave. The second thought for alternatives will be provoked if price exhibits a corrective pattern instead. At this point, there is an invalidity and therefore a ‘warning’. The chart below shows a case study on EURJPY.
We started from the chart above expecting the last leg toward 100. Wave V should be an impulse wave or an ending diagonal. This was violated when a double zigzag pattern surfaced instead.
The chart above, used in the last update, shows a double zigzag. This was a warning that price was probably going to resume upside. The once bearish opportunity turned bullish. That’s the point. An Elliott wave analyst/trader must be flexible as price validates or invalidates his view based on the wave theory. If the corrective move won’t be more complex, a rally should be seen.
20 March EURJPY daily Elliott wave analysis: what next?
The chart below shows the updated wave count of the rally from wave Y).
The rally has completed the 1st sub-wave at 122.87 before correcting downside. The idea is to wait for the correction to end. 119.5 – 120 are the levels to watch out for bullish opportunity. The correction is exhibiting the stages of a zigzag pattern. Patience is required. Updates will come later at AtoZforex. Stay tune.
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