After a long hawkish rally EURJPY took its time for a deeper correction under the daily chart, completing its structure with a 'c' wave at 130.0 level around 23.6 fibb. Followed by a quick bullish impulsive wave 1 making the pair land above 61.8 and took a break below strong resistance i.e 132.50 - pulling the pair back to 50fibb level which serves as a strong retracement position as well as a reversal towards the continuation of hawkish sentiments with our current market price above 61.8 fibb level again. 

As the corrective structure is complete and the facts and figures clearly portray that we will be monitoring the third impulsive wave which will drive EURJPY towards  133.40 as our target price. Our stop losses are going to be close to 131.20 which if broken will invalidate the principles of elliot wave and we would have to make a recount of the waves and figure out if the pair is turning towards a bearish momentum. 

EURUSD can be seen at a critical support level as well; more possibilities for reversal from 1.18400, provided by a robust strength because of dollars weakness and under the same scenario Japenese Yen also being downlplayed by the economical indicators as in the Tokyo annual CPI report and low vaccination rate which inturn is depriving the currency of its feet. 

We will be noticing the completion of EURJPY under current market scenario with its 5th wave breaking its previous daily high i.e 134.00, consolidating itself around 134.50 - 135.20, a swift reversal can also be expected from these levels. 

EURJPY Daily Time Frame, Bullish Continuation

Jul 01 2021