EURJPY Elliott Wave View: Pullback in progress

Short term Elliott Wave view in EURJPY suggests that the pair has ended the cycle from 2/24 low (118.18) and the instrument is pulling back to correct that cycle before turning higher again. Primary wave ((5)) is currently in progress higher and the rally from Primary wave ((4)) low at 118.18 is unfolding as an ending diagonal Elliott wave structure where Intermediate wave (1) ended at 122.88. The subdivision of Intermediate wave (2) pullback is proposed to be in a double three Elliottwave structure where Minor wave W ended at 121.59 and Minor wave X bounce is in progress.

The subwaves of Minor W looks to be in a zigzag Elliott wave structure, and if the subwaves of Minor Y later also takes the form of a zigzag, then this is a special structure of a double three where the subwave of both wave W and Y unfolds as a zigzag and we can call this structure a double zigzag. Near term, while Minor wave X bounce fails below 122.88 high, pair should turn lower in Minor wave Y of (2) towards 119.97 – 120.53 area before pair resumes the rally higher, provided that pivot at 118.18 low stays intact. We don’t like selling the proposed pullback and expect buyers to appear at above area for at least 3 waves bounce.