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20 March EURJPY daily Elliott wave analysis
20 March EURJPY daily Elliott wave analysis

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.

EURJPY Elliott wave analysis

Weekly EURJPY Elliott wave analysis (click to zoom)

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.

6 March EURJPY Elliott wave setup

EURJPY Elliott wave analysis, H12 (click to zoom)

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).

20 March EURJPY daily Elliott wave analysis

EURJPY Elliott wave analysis, H1 (click to zoom)

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.

Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below.

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