EUR/JPY Bullish Price Forecast Amidst Turbulent MarketsSeptember 27, 2022
· Elliott Waves Theory shows more uptrends for EUR/JPY exchange rate.
· A double-3 running setup emerged ahead of a stretched 3rd wave.
· EUR/JPY should climb past 150 to print an impulsive structure.
Volatility within the Forex market has hit dramatic zones after the pound plunged to historical areas today. As all markets remain interconnected, GBP pairs’ and the United Kingdom’s abrupt market moves have trickled to other markets.
Market players in Europe are yet to digest the complete impact of Italy’s election. Italy awaits a new government and prime minister (in the upcoming weeks) as the right-win won. That had the euro opening the new week in a challenging spot.
However, one pair seems attractive – the EUR/JPY. The Elliot Waves Theory shows a move above 150 shouldn’t excite anyone in the upcoming months.
EUR-JPY Completing Double-Three Running Setup
Elliot Waves Theory shows financial markets moving in waves – sudden and corrective. The former comprises five segments, whereas one remains the longest. Meanwhile, it extends and is usually the 3rd wave within an impulsive action.
However, how do Elliott investors identify an emerging 3rd wave? Well, the formation that precedes it reveals the answer. In such a narrative, the market printed a double-three running setup.
A running pattern seems nearly exclusive as the 2nd wave amid an impulsive move, before the stretched 3rd wave. Thus, the latest drop had the double-3 running shows a rally. That’s because the 3rd wave within an impulsive structure will likely follow.
EUR/JPY Prediction for the Coming Months
What should we expect from the EUR-JPY exchange rate in the coming months? First and foremost, watch out for an uptick and crack the b-d trend-line. Meanwhile, the move has a limited timeframe. Firstly, it should surpass the b-d trend-line in the same or less time the e-wave took form.
Secondly, the stretched 3rd wave has to be 161.8% (minimum) of the initial wave’s length. That results in a nearly 1.6K pips 3rd wave measured move. Meanwhile, a decline beneath 133 would cancel the bullish case.
Stay tuned for the upcoming financial updates.