The EUR/JPY made a bearish bounce at the 21 ema zone after a bearish breakout below it (wave a). The bearish impulse will probably complete a counter trend move near or at the 144 ema close.
4 hour chart
The EUR/JPY remains bearish as long as price action stays below the 21 ema zone. Price is aiming for the 38.2% or 50% Fibonacci retracement levels. This can be a bouncing spot for the end of the wave 4 (purple).
A re break above the 21 ema zone is needed to confirm the uptrend. The targets are up at 25-126.50 where the 161.8 and 176.4% Fibs are located around the Wizz 7 level. A break below the 50% Fib invalidates (red x) the bullish outlook and indicates a downtrend (dotted orange arrows).
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
For a look at all of today’s economic events, check out our economic calendar.