Simple Moving Average(SMA) 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The EUR/JPY is bullish, but is testing an important resistance at 115.63. The market did break above this, so following the previous post, we are now targeting the 117.25, and 117.70 swing projections.
- However, the market is at the moment in a correction, though not a very significant one so far. The RSI is above 40 so the bullish momentum is intact even in the short-term.
- A break back above 115.30 is an early sign of bullish continuation. On the downside, a decline should see support above 114.00 in a healthy bullish trend to follow this bullish breakout. I believe, it is okay for a throwback to reach as low as 112.60. Our targets are mere swing projections. Above 115.63, resistance is at the 119.60 area.
- We could have completed an impulse wave and is in another, building a bullish trend. This is the preferred count, but it is not clear to me as the market hasn't cleared the 115.63 successfully just yet. A failure, and then a decline below 112.60 will force an adjustment to the count, which would most likely point towards continuing consolidation int he medium long term, and therefore bearish in the short-term.
- If the bullish count is correct, we should see another rally soon to complete wave I of a new bullish impulse wave.
This count seems dubious yet it fits. Do you have another scenario for the EUR/JPY? We would love to hear what you think.