The EURJPY pair continues to exhibit significant momentum, and our latest Elliott Wave analysis provides a clear roadmap for traders over the coming sessions.
On the 4-hour chart, EURJPY has completed a corrective phase, forming a clear ABC structure that marks the end of wave 4 at 169.720.
This completion sets the stage for a potential impulsive rally in the upcoming waves.
According to our EURJPY forecast, the pair has already initiated wave i of the next bullish sequence, followed by a minor wave ii pullback.
The current positioning suggests that wave iii could extend significantly, targeting higher levels near 174.000, provided the market maintains its bullish momentum. Traders should keep a close eye on the invalidation level at 171.555; a breach below this point would indicate that the bullish wave count may require reassessment.
Key Levels to Watch: 171.555 Support and 173.019 Resistance
From a technical perspective, the 4-hour Elliott Wave chart shows a classic five-wave structure unfolding within the current uptrend.
The waves are clearly labeled with i, ii, iii, iv, and v, indicating a well-defined impulsive move.
This structure signals strong buying interest, particularly as EURJPY recovers from the 169.720 low established earlier in August.
Wave ii’s minor retracement offers a potential entry point for traders aiming to capture the next leg higher in wave iii.
Maintaining support above 171.555 remains critical for sustaining the bullish outlook, while a sustained break above 173.019 would further confirm the strength of the ongoing uptrend.
EURJPY Forecast: The 174.000 Psychological Target in Sight
If the current Elliott Wave structure remains intact, the bullish scenario is likely to prevail over the short to medium term.
A breakout beyond 173.019 could accelerate price action toward the 174.000 psychological level, attracting further buying pressure.
In conclusion, the EURJPY Elliott Wave forecast highlights a favorable trading setup with clear risk levels and upside potential.
Traders are encouraged to monitor the market closely, as the next impulsive wave could deliver substantial gains.