Currency Pairs USD/JPY and EUR/JPY Elliott Wave cycles Point Resistance

Published: Dec 27, 2021, 11:46 UTC•1min read

USDJPY is moving higher as 10 year US note comes lower, but the move still looks to be in three waves up on FX pair while 10 year shows potential flat formation.

Mentioned in Article

USD/JPY

¥127.120

-0.00%

EUR/JPY

¥136.088

-0.22%

As such, there is still a chance for a reversal, ideally, after the current fifth wave that is moving into 114.50-114.80 resistance area.

As per Elliott Wave analysis, USDJPY has completed the 5th wave as an ending diagonal (wedge) pattern and that weakness will resume towards much lower prices as a drop from 115.52 unfolded as an impulse. Ideally, that was wave A)/1), so more weakness is coming after an A-B-C rally within wave B)/2), which can be now approaching important resistance here around 61,8%-78,6% Fibonacci retracement and 114.50 level, from where we should be aware of another decline for wave C)/3).

USD/JPY 4h Elliott Wave Analysis

EURJPY is still in sideways consolidation in the 4-hour chart, which still looks like wave 4 correction, but we see 130.00 psychological level as key resistance, from where we have to be aware of another sell-off for wave 5, especially if we consider bearish looking EURUSD and resistance on USDJPY.