EUR/JPY Bullish Breakout Starts Impulsive Wave 3

Chris Svorcik Elite CurrenSea

The EUR/JPY made a strong bullish breakout above the resistance trend line (dotted red), which could indicate the end of the wave 2 (pink) correction and the potential start of the impulsive wave 3 (pink).

EUR/JPY

Daily

The EUR/JPY is now challenging the 144 ema close on the daily chart, which is a key decision zone for a bullish breakout or bearish bounce. The current daily candle is showing strength as the close was near the high. A breakout above the previous top of wave 1 could indicate a continuation higher.

4 hour

The EUR/JPY made a strong bullish impulsive breakout above both resistance trend lines (dotted red), which makes it likely that the wave 2 (pink/purple) correction has been completed and that price could be ready for a double wave 3 (pink/purple). The EUR/JPY needs to reach the Fibonacci targets of wave 3 vs 1 before this wave 3 pattern becomes more probable.

The analysis has been done with the CAMMACD.MTF template.

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Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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