EURJPY Bears To Complete Long-term Corrective Pattern

EURJPY has been trading in a corrective structure since Feb 2018. The corrective structure which is unfolding as a triple zigzag is about to complete the last leg lower.

As you can see on the chart, the decline from wave X high at 127.501 unfolded in a five-wave pattern in wave (a). It then followed by a three-wave bearish corrective structure in wave (b). According to Elliot Wave theory, once a 5-3 wave cycle is completed the trend will resume in the direction of the major impulse which is down in the EURJPY case.

We see an impulsive breakout of wave (b) corrective structure channel and a retest signal further confirming the continuation to the downside.

Verdict

As long as 122.943 "wave (b)" high remains intact, I will be looking to short on lower high till we reach the blue zone on the chart.

What is your view on EURJPY?